Methodologies

Methods of Analysis, Investment Strategies and Risk of Loss

Our overriding investment goal is capital preservation of our clients’ assets. Portfolios are constructed to maximize returns while adhering to our clients’ tolerance for risk. Regardless of the amount of diversification that can be built into our clients’ portfolio, investing in marketable securities involves risk of loss that our client should be prepared to bear. 

We design custom investment plans for all of our clients. John Endres and Larry Carroll work as a team in developing our clients’ investment plans. This process begins with meeting our client to assess their goals and objectives. At this time, our client is presented with a risk assessment questionnaire. The responses to the risk assessment questionnaire are then evaluated using Morningstar Advisor Workstation software. The software generates a recommended asset allocation policy for the client. The recommended asset allocation is then discussed with our client. The software generated allocation policy may then be modified to take into account our clients’ desire to be more or less conservative. The software generated allocation may also be modified to take into tactical allocations that we recommend to the client. Our tactical allocation recommendations are based upon our assessment of the economy, market volatility and/or other factors that are present at the time. 

Once our client is satisfied with the recommended asset allocation, we recommend specific investments for our clients’ portfolio. The foundation for all portfolios is a diversified selection of equity and fixed income mutual funds and ETFs. We will recommend individual equity positions that we believe offer above average return prospects, that are consistent with the clients’ risk profile and that fit with the balancing of the portfolio.

Upon approval of the specific recommendations by our client, we will execute the transactions. If our client has an account with Charles Schwab & Co., Inc. (Schwab), we will submit the trades to Schwab. If our client does not have an account at Schwab, we will assist the client in submitting the trades to their selected broker.

Our process utilizes Modern Portfolio Theory which attempts to maximize the expected return of a portfolio for a given level of risk. This is accomplished by choosing different asset classes that when combined will reduce overall portfolio volatility.

 

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