WealthArch Investment Execution
Our primary focus is investing in individual stocks; however we will consider individual bonds, ETFs, mutual funds, real estate investment trusts and commodities when appropriate.
Here are five important principles of our stock investing approach:
- We typically invest in 5-25 companies (stocks) at any given time. This reduces the risk of permanent loss because we are able to know our investments very intimately.
- We create starter positions and invest in great companies as long as the stock price is not overvalued.
- We intentionally keep some cash ready in order to aggressively invest and take advantage of market downturns.
- We believe that stocks are not simply pieces of paper that are traded, or an electronic price that changes in value. Stocks represent an opportunity to become a part owner in a business.
- Most stock investors focus on short term market movements. Our long-term perspective allows us to capitalize on short-term overreactions caused by fear and greed.
We don’t typically invest in bonds, but when we do these are our three key guidelines:
- We prefer not to invest in bond funds, because it is subject to higher interest rate risk compared to holding individual bonds to maturity.
- We typically invest in fixed income using a bond ladder approach. Bond maturities will be based on your individual needs.
- We focus on safety of principal when investing in bonds. We don’t try and reach for higher yields that may increase the chances of losing money.