Let’s face it, much of the traditional financial services industry has failed to serve investors properly. A sales-driven culture and an active-management investment model has left investors frustrated and wondering if there is a better way.
Core Wealth Management Inc. is part of a movement of advisors who are committed to delivering a better investment experience for our clients. We look to replace guesswork with evidence, and above all, put the client’s interests first. As part of this commitment, we adhere to 10 basic principles and practices.
We embrace market pricing. The market is an effective, information processing machine. With each trade, buyers and sellers bring new information to the market which helps set prices. The future is uncertain, but prices adjust to new information as it is made available.
We don’t try to outguess the market. We know that the market’s pricing power works against investors who try to outsmart other participants through stock picking or market timing, so we don’t waste our time, energy or resources to do this.
We resist chasing past performance. We know that investments that have outperformed in the past do not always persist as winners – in fact, many do not. Past performance provides little insight into an investment’s ability to outperform in the future.
We let the markets work for us. The fact of the matter is that the financial markets have rewarded long-term investors. People expect a positive return on the capital they supply and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.
We consider the drivers of returns. Rather than predicting which stocks, bonds or market areas are going to outperform in the future, our portfolios emphasize pervasive, persistent and robust dimensions that have been identified through academic research to have higher expected return potential.
We practice smart diversification. Our diversified portfolios are structured to hold multiple asset classes that represent different market areas across the world. This helps reduce risks that have no expected return. We avoid market timing. No one knows which market segments will outperform from year to year, and we don’t pretend to. As such, we hold globally diversified portfolios so that you are well-positioned to capture returns wherever they may occur.
We manage your emotions. It is difficult to separate your emotions from investing. Reacting to market conditions, whether the market is up or down, often leads to poor investment decisions at the worst times. We don’t react and we do everything we can to encourage you not to.
We look beyond the headlines. We know that growing wealth has no shortcuts. Success requires a solid investment approach, a long-term perspective and discipline to stay the course.
We focus on what we can control. We build an investment plan that is conducive to your goals and consistent with your risk appetite, we structure portfolios that capture dimensions of returns, we diversify broadly, we keep expenses and turnover to a minimum and we minimize taxes. It is these things that will make the greatest difference to your investment success over time.