Our investment philosophy differs from the generic approach used by many financial advisors, who simply offer standardized, broadly-diversified, high fee portfolios of stocks and bonds, and then hope to outperform a benchmark index, such as the S&P 500. At Blackhaw Wealth Management, we begin with wealth preservation as our primary consideration, and then formulate customized investment policies and portfolios that are tailored to the needs of each client and are designed to protect against the risks of inflation, currency devaluation, and taxation. Following are seven core principles that drive our investments and our approach to private client wealth management:
Discipline: Long-term discipline prevails over reactions to short-term market fluctuations; serious investors avoid market timing.
Diversification: Diversification matters, and true diversification across asset classes, currencies, adn investments is the key to risk reduction
Asset Allocation: The future is uncertain and unknowable; develop an "all-weather" investment portfolio.
Risk Management: Historical averages and "base case" scenarios are not very useful when assessing investment risk; emulate the engineer and contemplate extreme events.
Talent: Serious investment managers pursue well-considered strategies and have their own capital at risk; avoid asset gatherers.
Opportunity: Potential investment returns can be increased by pursuing niche areas of opportunity within markets.
Cost: Fees, taxes, and transaction costs significantly erode wealth, and therefore need to be actively minimized.