Investment Philosophy

Our investment philosophy is put together through many different economic thoughts and investment theories. No single theory provides the ultimate clear path to prosperity. We at Rock Martin take them as they are: well studied theories that provide us some guidance based on past performance in different markets. As we can learn a lot from history and investment theories we understand that any given year the market can deliver a return way outside of any model’s prediction or projection (meaning an event that is predicted to happen once every 100 or 1000 years can happen much quicker and multiple times in that timeframe).

We have learned to use investment theories to give us a gauge of risk and pair that with behavior finance to see if the investments are a proper fit. Fit and need are two different aspects of portfolio allocation and it’s important to us to discuss this with our clients. Some people may have a hight risk tolerance but a low need to be exposed to risk. This discussion helps the client understand more clearly why they should be invested in a particular way versus being too aggressive or conservative based on their emotional threshold.

We then put together an individualized portfolio with majority weighting in mutual funds and ETF and add individualized stocks to increase alpha. Individual stocks can create more volatility so we increase or decrease our stock position depending on economic conditions and valuations.

Investing in mutual funds involves risk, including possible loss of principal. An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors. Stock investing involves risk including loss of principal. No strategy assures success or protects against loss.