Investing
Three key principles are critical when it comes to investing: Science, Art and Flexibility. One investment management firm employing these three principles has captured my attention, Dimensional Fund Advisors (DFA). Read how these three elements differentiate them from other portfolio management firms.
- Science: The scientific process they employ is the cornerstone to DFA’s belief in market efficiency and market equilibrium.
- Art: Investing requires the judgement and skill needed to implement the science. DFA’s years of experience provides the judgement necessary to remove the noise a strict implementation of science will create.
- Flexibility: This is the bridge DFA brings to the table. Their experience of risk dimensions enable them to engineer portfolios with measured and efficient exposure to tangible risk factors. In addition, trading flexibility mitigate effects of momentum in stock prices reducing trading costs by being patient and focusing on price over time of execution. The result is avoidance of costly liquidity premiums paid by traditional index fund managers.
You are welcome to download a brochure from Dimensional that explains in greater detail their value added benefits. science_of_investing_us
I incorporate the art, science and flexibility of Dimensional’s investment management into my investment advisory services. As I mentioned on the first page, I use an extensive team of outsourced professionals to help with advising you. Summit Wealth Management is the outsourced team that provides investment advice, portfolio design, allocation models and execution for my clients. TD Ameritrade is the custodian who holds and facilitates all transactions for my clients.
When you hire me, you are actually hiring a large team of professionals who work in the background. Here is a tidbit for you, most firms operate at a level of suitability, not fiduciary. Therefore product recommendations are based on sales quotas, not what’s best for the client. This is not a practice at my firm.
