Investment Approach: Wealth Management Investment Decisions
Flautt Hare Davis follows a core investment philosophy that is derived from the following principles that guide the investment decisions we help our clients make:
- Asset allocation seeks to reduce portfolio risk. Effective asset allocation incorporates diversification among traditional stock, bond, and cash instruments, as well as non-traditional alternative investments. *The client’s distribution goals and risk tolerance guide our investment choices.
- Investors should be educated as to how their investments fit into their portfolios and why they own particular assets.
- Minimizing investment cost is crucial for long-term success.
- An investor’s primary decisions should involve creating goals and investment objectives, not the selection of individual investments.
- Risk is multi-dimensional. Investors should weigh “shortfall risk” – the possibility that a portfolio may not meet long-term financial goals – against “market risk,” – the reality that returns on investments may fluctuate.
- Market-timing and performance-chasing are not part of a winning investment strategy. However, managing risk can seeks to help preserve capital and may include short term investment changes in times of unusual volatility.
*Asset allocation does not ensure a profit or protect against a loss.