Our Investment Philosophy
Markets Are Efficient
Markets work, and for investment purposes, assets are
fairly priced. Each day, thousands of the most intelligent
people on Earth work long hours in an attempt to find
stocks or bonds that will outperform the market. Winning
often represents more luck than skill. Betting your financial
future on any investment advisor’s ability to select a few
winning stocks is a loser’s game. Our core belief
is that the markets are “efficient”, meaning
prices reflect the knowledge and expectations of all investors.
Though prices are not always correct, markets are so competitive
that it is unlikely any single investor can routinely profit
at the expense of all other investors.
Diversification Reduces Risk
Diversification is the antidote to uncertainty. Concentrated
investments add risk with no additional expected return.
Diversification is the most important component in helping
you reach your long-range financial goals while minimizing
risk.
Risk and Return Are Related
Priced risk factors determine expected return. Bonds historically
have a lower level of risk than do stocks. Bonds also have
a lower level of historical return. Stocks demand higher
levels of return based on their higher risk levels.
Structure Explains Performance
Proper asset allocation is the principal determinant of returns
in a broadly diversified portfolio. McSherryAnderson's approach
to investing is to combine the broad diversification and
low cost of passive investment strategies with proper asset
class exposure among multiple market sectors. Our strict,
disciplined approach removes the emotional aspect of investing,
and focuses on the truly important characteristics of your
portfolio.
Costs Do Matter
It is our pledge to bring the most cost effective investments
and services to each client. Every fee that is paid directly
reduces investment returns, and mutes the long-term growth
of any portfolio. Our investment selection process attempts
to maximizes
your returns by minimizing your cost of investing. Management
fees, expense ratios, 12(b)-1 fees, mortality and expense
charges, portfolio turnover, transaction costs, loads,
and a host of other fees all work ceaselessly to reduce
the value of your investments. At all times, we strive
to reduce or eliminate the unnecessary fees from your portfolio,
providing increased returns at a fraction of the cost of
other firms.
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