1. Are overconcentrated in one position or industry and suffer a permanent decline.
2. Have inadequate liquidity and need to withdraw money from their portfolio when equities are undervalued.
3. Have emotional, knee-jerk reactions that disrupt a long-term plan.
Maintain disciplined diversification so that portfolios are not overweight in any one position/sector
Plan proactively for the bad days.
Are clear about how much liquidity you might need in the future so we are not forced to sell a good position at a bad price.
Coach you to consider the possibility of adversity such as a job loss, temporary or permanent disability, untimely death, etc.
Hold non-equity, high-quality, liquid securities and tactical cash as a buffer so you have cash to buy equities at low prices.
Hold fixed income instruments that can protect you during downturns.
Talk about things annually. Get your risk tolerance out on the table.
Only invest where we have strong convictions. We look at multiple variables and the mathematics behind each investment. We ask, will it benefit the portfolio? Can it harm it?
Educate you and constantly remind you of your long-term progress, which helps you maintain balance and perspective.