Strategies

Measured Risk Portfolio

Our Message is Simple

As Warren Buffet has said,

Rule number 1 is don’t lose money.

Rule number 2 is refer to rule number 1.

Now that we’ve demonstrated how our attention to losses may ultimately pay off with long term rewards, let us help you take the next step:

Assess the Risk in Your Portfolio

We utilize software that can run a historical analysis of your current portfolio in order to calculate the prior gain and loss ranges that have already occurred. We can then apply these percentages to the value of your account to share with you the actual dollar amounts that you are risking in exchange for the potential reward.

Many investors find this process to be enlightening. Learning you have, for example, a historical 20% loss exposure may not sound like much, but when you apply it to a $1,000,000 portfolio, we’re talking about $200,000. That’s risking the approximate value of 4 years at a prestigious private college or even a home in many parts of the country.

Take Steps to Manage the Risk

Each person has their own unique circumstances that dictate what is prudent. Some client’s can withstand a greater loss because they have greater funds and more time to recover. Other clients may be near retirement and unable to bear the risk. With Measured Risk Portfolios, there may be a greater potential that significant losses can be avoided than is possible with diversification alone. We can’t prevent your investments from losing value, but our hedging, if successful, will reduce the effect on your overall portfolio.

Stop Worrying About What You Can’t Control

The market will do what the market will do. Without a protective plan in place, years of successful investing could be wiped out in just days or months.

With our approach, we can help you arrive at an acceptable risk level so the movement in the market doesn’t have to be uncontrolled.

I don’t expect my advisor to make me wealthy,

I expect my advisor to keep me that way.

While there is inherent risk in investing, the degree of risk can be mitigated, or “measured,” by using specific hedging techniques to limit the severity of losses.

These techniques result in an approach that seeks to protect investor wealth, while at the same time offering growth potential.