Portfolio Creation & Management

Investing isn’t a game, nor is it for the faint at heart. Markets go up, and as history has proven, markets will always also come down. There is no such thing as achieving perfect performance through market timing or by only picking ‘winners.” However, you can certainly build a solid portfolio that allows you to succeed and (generally) avoid the stress and worry that can go along with market volatility.

We thus take the pain of the whole process by creating a portfolio that guides you through the eight essentials below;

  1. Commit to your purpose; if you know what you want to accomplish and achieve financially, you have a good idea of not just where you are heading, but what it would take to get there.
  2. Understand your starting place, and be realistic about your appetite for risk; if you know what you want to accomplish, you have a good idea of not just where you are heading, but what it would take to get there; Very few of us have a realistic understanding of how much risk we’re willing to take on to achieve our financial goals.
  3. Invest with an “end” in mind; You know your purpose for investing, but do you know what it will cost to achieve that purpose? You have to have a fairly solid understanding of the amount of money your purpose will require. As the wise baseball philosopher, Yogi Berra, said, “If you don’t know where you’re going, you’ll miss it every time.”
  4. Invest with a plan; The most successful portfolios are not thrown together haphazardly; they are assembled based on a solid understanding of the fundamentals of the individual securities that comprise the portfolio. A solid portfolio is diversified not just across investment vehicles and exchanges, but also with an eye toward sectors and/or geographic regions that are expected to perform well. The portfolio should also factor risk tolerance into the balancing discussion.
  5. Think “Quality” over “Quantity;” Structuring a portfolio that delivers solid, long-term results means that the underlying fundamentals of your holdings are critically important. While the latest IPO-of-the-moment may appear to offer an exceptional return in the short term, an offering that isn’t supported by strong fundamentals may actually stumble out of the gate.
  6. Give it Time; This is critical because it requires you to link all of the ideas noted above to build a solid portfolio. Building your portfolio by identifying your purpose, what you need to achieve that purpose and your risk tolerance, and basing it all on solid fundamentals, is a proven approach that doesn’t lend well to in-and-out, market-timing types of investing approaches. While there may be some investment choices that you hold for shorter periods of time than others, overall, maintaining the long view should deliver consistently positive returns.
  7. Don’t obsess about the day-to-day. Markets can be volatile from day to day, even month-to-month, never mind hour-to-hour. But over longer periods of time, volatility subsides. Build your portfolio and let it run. Checking the market every 15 minutes or so won’t affect your portfolio, but it will affect your sanity.
  8. Stay focused on what you can control. Which is really just your individual approach and mindset. You can’t control the markets, the companies that you’re invested in, the political climate, the weather – really anything – except your commitment to your strategy. Determine your strategy on your own or with a financial advisor, and stick with it.

As a client, we save you the headache and having to plan for the market volatilities by guiding you to able financial advisors whose services will guarantee better returns on your capital investments over time in spite of the market movements.