Design Your Portfolio

The point of your portfolio is to diversify your unique personal risk and then deliver the returns of the global market portfolio in pursuit of your goals, consistent with your risk tolerance and your willingness to accept tracking error to market benchmarks.

Academic research has identified factors that have posted superior risk-adjusted returns over long periods of time (with no guarantee whatsoever over shorter periods). These include investing in value stocks, small company stocks, momentum stocks, high quality stocks, and low volatility stocks, both domestically and internationally. (See Chapter Six of The Affluent Investor for more details.) These are the building blocks of our equity portfolios.

This means integrating all of your “outside” holdings (401k plans, annuities, etc.) into the design of your portfolio. We usually can pull these into our portfolio monitoring system so you can see how the pieces work together. As an added bonus, Conservative Wealth Management LLC does not charge for providing consultation on the investment of held-away assets, even where their value exceeds those of the assets we manage.