Investment Philosophy

At Coastwise, we seek to invest for the long term but are open to taking advantage of near-term opportunities. Of course each portfolio is unique, but our approach to investing is consistent regardless of account objectives and time horizon. First, we approach investing with an emotionless discipline. We apply this approach to creating a portfolio of best of breed securities including stocks, bonds, exchange traded funds, and mutual funds as appropriate. Why seek to own best of breed securities? Because it is harder to make a mistake when you are buying the strongest company in a given industry or most highly rated mutual fund. Avoiding mistakes is one of most important elements of successful long-term investing. Around this core portfolio, we often add satellite investments which may include specific sector exposure or alternative asset classes (e.g. commodities, REITs, MLPs).

We don't believe you can predict short-term market movements; if you ask us on any day of the week where we think the market will be trading in the coming days or weeks, you will receive the same answer: we don't know. We absolutely do believe, however, that you can take advantage of near-term market/stock movements. By taking profits where appropriate, we seek to reduce risk in the portfolio. Back to emotions... we recognize that for most investors money has a very large emotional component. Unfortunately most investors' brains are wired to make decisions precisely contrary to their financial interests. Thus it is our job – via education, communication and other means – to keep our clients on track with their investment plan. We take this job very seriously. We recognize facts change and adjust accordingly, putting ego aside. Finally, we seek to be direct and transparent in our communications with clients.

Investment Process

Assess client goals

  • Define objectives (income, aggressive growth, etc.)
  • Establish time horizon

Build portfolio consistent with client goals

  • Diversification
  • High quality securities which meet strict criteria
  • Position weighting

Manage portfolio actively

  • Take advantage of natural market swings
  • Seek opportunities in other asset classes (e.g. commodities)

Monitor portfolio regularly

Regular client interaction & education

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