Investment Strategy

SERVING HOUSTONIANS AND SURROUNDING AREAS SINCE 2002

INVESTMENT PHILOSOPHY: Reduce risk while seeking growth.

• Use economic and company fundamentals to make decisions.

• Invest for the long run and avoid short-term, speculative trading.

• Buy companies that are reasonably priced and have growth opportunities.

• Recognize that reward does not equal risk - reward more often is equal to acquiring at low prices, which actually reduces risk.

 They say you should follow two rules when investing:

1. Don't lose money.
2. Don't forget rule number one. 

The reality is that every investor loses money at some point.  But keeping these rules in mind is still a good place to start as they prevent reckless investing. They make you think before committing to any investment.  They help to maintain focus, as well as reduce errors of commission (selling in a panic, buying on a rumor), along with excessive trading costs that over time lower your return on investment.

So, how do my clients and I maintain focus and reduce risk?  We start by relying on real data, economic fundamentals and company fundamentals.  We do not rely on rumors or the perceived panic of the moment, whether political or economic.  And we always invest with a time horizon of at least three to five years, and preferably five to ten years.  We avoid speculation at all costs.  Why?  Because we believe that in the long run the U.S. economy and its companies will grow, and that growth will be reflected in the stock market.  Next we look for companies that appear to be reasonably priced and have ample opportunity for their products or services going forward.

Finally, we do not adhere to the worn adage "reward equals risk," wherein the greater the risk the higher the payout.  We believe the exact opposite to be true.  We think that limiting your risk going into an investment will also limit your future losses and potentially produce higher returns.  But to archive that you must be a long term investor, not a trader attempting to capitalize on trends.  That's high risk.  We are risk averse. 

For more strategy, check out our Business Strategy page. Also, take a look at our Investment Management Services page.

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