“A mind once stretched by a new idea never returns to its old
dimensions.” -
Oliver Wendell Holmes
Investors today
are given an incredible array of choices about how to invest their
money. This firm was created to help those frustrated with the
constant barrage of confusing and conflicting investment
information, hit-and-miss approaches and exaggerated return claims.
The truth is,
everyone can win because our
economy operates under the
economic miracle of a free capital market system. When done
right, you too can achieve investing success.
Our approach to
investing is the application of Modern Portfolio Theory (MPT). MPT,
pioneered in the early 1950s by Harry Markowitz, is a scientific
system for building the optimal or “efficient” investment. His research
earned him the Nobel Prize award for Economic Science in
1990. It has been tested and
refined for years by top economic professors, including Eugene Fama
and Kenneth French.
MPT centers on
the idea of combining asset classes that historically move diversely
of one another. Each investment asset class (e.g., growth, small
cap) has a certain risk/return character of its own, but also a
unique relationship with the other asset classes. For example,
research indicates that U.S. and foreign markets often move in
different directions. The same could also be said for large and
small stocks in the U.S. When seemingly adverse asset classes are
combined in an investment portfolio, their individual risk
characteristics tend to smooth out the overall risk.
Research has
long shown that asset class investing continually outperforms other
methods and minimizes risk.
Asset-class mutual funds,
because their
performance matches that of the market segment or index they
represent, lead to lower portfolio turnover, which results in lower
costs, fewer tax consequences and, in turn, enhanced returns and
lower risk.
Institutional
investors have used asset-class mutual funds and Modern Portfolio
Theory for some time, knowing it’s the best way to protect the
investments placed in their trust. We offer this method to all and
by doing so, put an end to the myths and mysteries of financial
investing.
We hope this
site is helpful to you and that you will contact us with any
questions or if we can be of assistance.
James N. Whiddon CFP, MSFS
President & CEO
