Investment Philosophy

At Winston Wealth Management, we take a different approach to investing than do many other financial advisors. Our core strategies are derived not from Wall Street, but from academia (business schools), which we believe are a more reliable source of unbiased advice.

Every client's situation is unique.  The investment plan has to take into consideration a number of factors including the client's goals, risk tolerance, time horizon, asset level, and income sources such as pensions and social security. However, the following describes our general philosophy:

Markets are efficient:

This means that new information is incorporated into a security's price very quickly, almost instantaneously. This efficiency makes trying to consistently beat the market very difficult if not impossible. Therefore, we do not practice market timing or attempt to pick “home run" investments - we believe such strategies add more risk than return.

Businesses Create Wealth:

Businesses across the globe strive to generate profits that are eventually reflected in stock market returns. Our goal is to simply capture these returns efficiently and with acceptable levels of risk.

Manage Risks:

Do not take more risk than is necessary to achieve your goals. Risks that you cannot afford to take should be avoided or properly managed.

Asset Allocation is Key:

Your investment performance (risk and returns) will be greatly influenced by how you spread your investments across the various asset classes, especially between stocks, bonds, and cash. Asset allocation does not ensure a profit or protect against a loss.

Always Diversify:

Investments should be broadly diversified to ensure that returns are captured wherever they are produced. It is impossible to know beforehand which asset classes will be up or down in a given year. Diversified portfolios tend to be less volatile and less risky than concentrated ones. However, there is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Emotional Control:

Fear and greed are enemies to good financial planning. A good financial plan developed during calmer moments should not be abandoned or modified simply because of something that the market did. Rather, your plan should be modified when your goals or personal situation changes.