Each investor’s risk tolerance is unique. Through an interactive approach we work with our clients to assess each individual’s risk tolerance and recommend prudent investment objectives.
Our risk management revolves around obtaining optimal diversification across countries, industries, market capitalization groups, and asset classes. Optimal diversification involves asset allocation across only prudent investment opportunities thereby striving for wealth creation with reduced volatility.
Optimal diversification doesn’t mean watering down your portfolio with bad investment ideas in order to avoid regret. Nor should it mean fearing to deviate from a benchmark (index). Optimal diversification is about investing in the best ideas across as many investment groups needed to minimize your downside risk.
We believe that at times it is prudent to maintain a larger holding of short term bonds during periods of heightened market valuations and volatility. These temporary departures from the long term investment strategy are to protect capital while waiting for a more favorable risk to reward investment climate.
“Be fearful when others are greedy and be greedy when others are fearful” – Warren Buffett