Our Investment Philosophy

The Pappas Wealth Management Group believes firmly that an efficient and prudent investment strategy does not have to be confusing. As Warren Buffet so often says,  "Investing is simple, but isn't easy."   We agree. That is why we offer simple and straightforward investment strategies working under the premise of the advice of legendary investor, Benjamin Graham, who stated: "The essence of investment management is the management of risk." We are of the firm conviction that a successful investment strategy lies in managing the risk of our client's portfolios through a disciplined approach and conservative investment philosophy.  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We believe the key to our success in managing our client's money is adhering to our six interrelated tenets  of a successful investment strategy:

  1. Own quality investments (no speculation)

  2. Diversify your investments (asset allocation)

  3. Invest for the long-term (minimum 3-5 years)

  4. Hire professionals to manage your assets (don't do it yourself)

  5. Implement a cost-effective investment strategy (cost matters)

  6. Don't allow the "tax tail to wag the dog  (make decisions first based on the wisdom of the investment strategy, and then take a look at the taxes. 

 

Once you have a prudent strategy in place, it is important to streamline your investment process. Once complete, your investment strategy should be able to stay on autopilot, only needing minor adjustments from time to time. If you are still actively saving for retirement, we believe you should:

  • Participate in your 401(k), and contribute the maximum allowed.

  • Invest maximum amount at the beginning of each year in a Roth IRA.

  • If not eligible for a Roth), invest maximum allowed in a traditional IRA.

  • Invest money in a 529 college savings plan (if applicable)

  • Invest monthly in your investment portfolio (dollar cost averaging).

We make decisions on your account every day. Most days, we decide to do nothing. We regularly remind clients not to let our patience and discipline be perceived as inaction on our part. We are actively and patiently executing our strategy.

Diversification does not guarantee a profit or protect against loss in declining markets. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. A periodic investment plan such as dollar cost averaging does not assure a profit or protect against a loss in declining markets. Since no one investment strategy is suitable for all types of investors, this information is provided for informational purposes only. You should review your investment objectives, risk tolerance and liquidity needs before selecting a suitable investment strategy.