NewFocus Financial Group’s Investment Philosophy
We are committed to a thoughtful and long-term approach in our attempt to build and protect one’s wealth. The primary objective is to provide attractive risk-adjusted returns, preserve investments, and minimize volatility-based risk in a changing market, economic and tax environment. Our approach to investment management follows a myriad of disciplined guidelines. For example, we feel it is crucial to focus largely on downside protection, that an exhaustive pursuit of future investments will eventually lead to the uncovering of value, and overpaying for growth opportunities will diminish your overall return on investment.
- Protecting against serious losses is paramount to long-term success. Successful investing starts with a focus on risk management and wealth protection.
- Do not overpay for growth. If you pay too much for appreciating assets, your overall long-term return on investment will be diminished. The price you pay for something, regardless of the projected growth of future expectations, is more important than the size of the expectations themselves.
- Be patient and let opportunities come to you. As Warren Buffet has said, “Be fearful when others are greedy and greedy only when others are fearful.”
- Recognize the investing environment in relation to the current business and economic cycle. Understanding past cycles and market environments provides a framework to determine the risks that are present and when excellent investment opportunities present themselves.
- Be willing to admit you are wrong and learn from your mistakes. Learning from your mistakes accelerates progress towards improved outcomes and provides experiences that enable you to change your course of direction before unwanted actions are repeated.
- Control what you can. A well-defined and disciplined process is controllable but the future is not. Remove any emotions from the decision making process. Hope is not an investment philosophy.