Investment Philosophy
WebsterRogers Financial Advisors, LLC offers an investment philosophy that is based on modern portfolio theory (MPT) and passive asset-class investing. The world’s leading financial economists, three of whom received a Nobel Prize for their contributions, conducted ongoing research resulting in the formation of MPT.
The major tenets of MPT are
* Markets are efficient
* Over time, riskier assets provide higher expected returns as compensation to investors
* Volatility can be reduced and expected rates of return can be increased by adding high-risk, low-correlating asset classes to a portfolio
Asset-class investing can be defined as simply taking your investment pie and assigning appropriate slices to the major investment categories. An asset class is a group of assets with similar risk characteristics. Asset classes can be as broad as fixed-income/cash versus stocks. Or, they can be more narrowly defined such as large or small company stocks and growth or value company stocks.
