Broad Perspective. Insight. Discipline.
A major pillar of comprehensive wealth management is the investment management philosophy that guides all portfolio decisions. At BOS, we seek to provide you with consistent, competitive returns over time by limiting risk to a level with which you are comfortable, taking a broad macroeconomic view of markets, and by utilizing disciplined investment management and sophisticated market selection. The following tenets are fundamental to our investment management approach.
A Broad View & Long-Term Perspective
The asset allocation decision is based on a long-term macroeconomic perspective, not short-term anomalies. We consider numerous variables when constructing portfolios, such as expected inflation, deflation, corporate earnings, geopolitical concerns, interest rates and currency valuations. We manage portfolios from a long-term, controlled-risk perspective which strives to deliver reliable returns, build lasting wealth, and avoid the single catastrophic loss that can profoundly affect long-term returns.
Asset Allocation & Diversification
Our investment management approach is grounded in Modern Portfolio Theory, the Nobel Prize winning research that demonstrated that the way in which different asset classes are combined has a significant effect on portfolio returns. We focus on building broadly diversified portfolios across multiple asset classes, and utilizing rigorous analytics to identify the appropriate allocation between those asset classes to maximize return relative to a particular level of risk.
Intelligent Risk Taking
Risk is not the necessary evil that many believe it to be. Rather, it is the engine that drives returns. Put a different way, investor returns are compensation for assuming some level of risk. However, while systemic risks are inherent in any investment management strategy, there are “uncompensated” risks that can be eliminated through careful diversification. We believe in “intelligent risk taking” – which entails the identification, quantification and control of risk, and the avoidance of uncompensated risk.
Discipline is Critical to Success
Many sound investment management strategies fail because they are executed without discipline. To us, discipline means adherence to an intelligent long-term strategy, despite market volatility or the out-performance or under-performance of any particular asset class. For over 30 years, we have refused to follow investment fads, but have instead used proven and disciplined methodologies to design portfolios to stand the test of time and meet our clients’ objectives under a variety of economic circumstances.
Managing investment costs and taxes can have a significant impact on returns over time. Our rigorous approach to minimizing the total cost of investing includes the selection of low cost investments, proactive tax loss harvesting, the use of low turnover investments, and the careful placement of securities between taxable and retirement accounts as appropriate.
We place a high value on liquidity in our investment selection process. As a result, the large majority of the assets we manage on behalf of our clients are considered highly liquid and can be converted to cash within a few days.
As an investment management firm in San Francisco and Silicon Valley we take great pride in assuring that our clients are satisfied with our services. To talk with one of our investment advisors click here.