Consider the Following Hypothetical Example:

Two investors begin with $500,000; each investor earns a 7% average annual return. Investor “A” is exposed to high volatility and investor “B” is exposed to much lower volatility. At the end of 5 years investor “B” has over $100,000 more than investor “A.” Why? Overcoming losses can be devastating to long-term portfolio performance and disruptive to achieving one’s goals.

This example is hypothetical in nature and for illustrative purposes only. Actual results may vary.

From 2000 to 2008 many investors lost over 40% two separate times. If an investor loses 40% it takes a 67% rate of return just to break even. An investor who manages to reduce losses will outperform an investor who seeks large gains but experiences significant losses. An investor exposed to large losses will spend a great deal of time simply trying to regain their principal back. As Warren Buffet implied, “investors win by not losing.”

This philosophy is fundamental to our investment approach and permeates our thinking and research. Our goal is to achieve growth and income by maintaining stable and consistent performance results enabling our clients to continually to meet their investment goals and objectives.