Our Investment Approach
To add value for our clients, we focus on the following proven investment strategies:
Broad Diversification. While many managers primarily invest in large US stocks, we routinely diversify investment portfolios over seven to 12 different asset classes. This approach typically lowers the risk (volatility) of a portfolio, while maintaining – or, even potentially increasing – expected returns.
Ongoing Investment Research. We carefully study changing economic conditions, and translate this research into specific investment advice for our clients. Our goal is to take advantage of economic trends, and to avoid some potential potholes along the way.
Disciplined Rebalancing. By rebalancing client portfolios back to target levels, we impose the discipline of selling a portion of those asset classes that have appreciated the most, and buying more of those that appreciated the least. Studies demonstrate that this patient and disciplined form of investing can substantially improve portfolio results.
Tax Management. We understand that it is not just what you make on your investments, but what you keep that is important. CCM strives to minimize the tax consequences of trading activity and to maximize the benefits of tax sheltered accounts.
Indexing has been consistently shown to outperform active management and is recommended by advocates including Warren Buffet, John Bogle (Vanguard), David Swensen (Yale), Charles Schwab, William Sharpe (Nobel Prize winner), and many other well-respected investors.
Cost Saving through Indexing. We vigorously pursue opportunities to save our clients money. This includes minimizing expenses from taxes, trading costs and fees. For these reasons, we are strong advocates of index funds, including exchange traded funds. These investments, recommended by many of the most highly respected professionals in our industry, have been repeatedly shown to generate superior returns.
To learn more about our investment approach, and how it can benefit you, please contact Colorado Capital Management today
