Our Approach To Risk



​​​Risk is the permanent loss of capital, which chiefly occurs when people:

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.


To combat the potential for discomfort and loss, we:

  • 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.