Investment Philosophy
Pure Wealth Management (PWM) will strive to understand our clients' current financial circumstances, investment objectives, required income needs, risk tolerance and return expectations. PWM will customize a strategic asset allocation that is tailored to meet those specific needs.
PWM believes in traditional, simplified and diversified investment strategies and portfolios using traditional investments that include mutual funds, stocks, bonds and money market funds. The portfolio manager will consider more modern and advanced investment vehicles such as alternative investments, currencies, commodities and exchange-traded funds if beneficial to the diversification and performance of the portfolio. PWM will incorporate complex investment strategies and investment vehicles such as hedge funds, private equity portfolios, long-short strategies, options, etc. when appropriate for experienced and sophisticated investors.
PWM built an investment philosophy with the understanding of the fluidity and unpredictability of the stock market while incorporating a discipline approach to discovering undervalued investments while focusing on the single biggest component in managing an investment portfolio, managing and understanding risk and volatility.
PWM Investment Philosophy Fundamental Rules:
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Non-correlation is the key to managing risk and volatility
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Multi-Asset Class Investing
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Being diversified may not protect a portfolio during severe economic and market instability
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Efficient market theory promotes procrastination and indecision. An actively managed strategy may be appropriate. Always contact your advisor in the event of a change in your risk tolerance.
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Procrastination and indecision lead to hindsight investing and frustration
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Concentration equals conviction
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Strategic Models with Tactical Allocations
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Over-diversification leads to substandard performance
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Equity selection based on Graham-Dodd deep discount to intrinsic value model
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Global Investment Selection
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Sector and Geographic Focused