What is Your Investment Philosophy?

“What is your investment philosophy?” This pivotal question is one every client or potential investor should pose to their investment advisor. At Successful Portfolios, our answer is clear and straightforward: We help clients achieve their investment objectives by identifying and managing risk. Our team of experts evaluates each client’s risk tolerance, time horizon, and worldview before making investment decisions. We integrate prudent risk management across various investment philosophies when selecting appropriate assets for each client.

Below is an overview of some of the major asset management styles and investment philosophies we may draw from:

• Growth investing – Focuses on stocks with earnings and revenue growth expected to outpace the market.
• Value investing – Seeks out underpriced stocks trading below their intrinsic values.
• GARP – Growth at a Reasonable Price targets stocks with growth potential and attractive valuations.
• Contrarian investing – Involves buying stocks currently unpopular or out of favor, aka turnaround investing.
• Dividend and income investing – Focuses on stocks and bonds generating dividends and interest income.
• Momentum investing – Buys stocks exhibiting strong relative price momentum.
• Quality investing – Targets companies with solid financials, respected management, and sustainable competitive advantages.
• Quantitative investing – Uses statistical and mathematical models to construct portfolios.
• Socially responsible investing – Considers environmental, social, and governance (ESG) factors alongside financials.
• Low turnover investing – Focuses on minimizing buying/selling to lower costs, aka “Lazy investing.”
• Tax-efficient investing – Manages portfolios to minimize tax liabilities.
• Index investing – Seeks to match the performance of market indexes like the S&P 500.
• Custom indexing – Creates custom indexes, then builds portfolios to match them.
• Core-satellite investing – Blends index funds as core with stock picks as satellites.
• Small cap investing – Focuses on stocks of small capitalization companies.
• Global investing – Invests in companies located anywhere in the world.
• Technical analysis – Attempts to predict price movements by analyzing historical price patterns and trends.
• Tactical asset allocation – Makes adjustments to asset class mix to capitalize on changing macro conditions.
• Market timing – Makes buying and selling decisions based on predictions of market direction.

At Successful Portfolios, our approach is always investor-centric rather than constrained by labels.

The lines between philosophies, styles, and factors can often blur. For example, Growth, Value, and Quality may share similarities and be considered investment philosophies, styles, or factors. We synthesize the most effective elements across categories when designing portfolios tailored to each client’s preferences and goals. If you’re interested in learning more about our personalized approach, please reach out to us at (727) 744-3614 via call or text.