The Compass Investment Philosophy

Smart Investors Follow Principles Not Market Cycles And Trends.

Not Sure Compass Is Right For You? This Is The Best Place To Start.

After you complete our initial financial planning process, Compass creates a custom asset allocation strategy to make the most of your financial resources.

The Three Pillars Below Are A Framework We Use To Help You Invest Confidently And Focus On Your Goals, Regardless Of What The Market Is Doing.

We Believe In Asset Allocation, Not Market Timing

Market volatility is an inevitable part of investing. We believe investment decisions should be made based on your goals and values, not on our feelings about markets.

That’s why we develop a custom asset allocation strategy for each client that will help them accomplish their goals through all market cycles. This allows us to confidently focus on long-term outcomes, instead of mindlessly following the latest product or trend.

“Short-term market forecasts are poison and should be kept locked up in a safe place, away from children and also from grown-ups who behave in the market like children.”


Diversification Is The Key To Successful Long-Term Investing

Once we determine your asset allocation and appropriate risk framework, it’s time to construct your portfolio. For many of our clients, we manage their entire investment portfolio that they have worked decades to accumulate.

Instead of going all in on one or two sectors, we build portfolios across industries, market capitalizations, and asset classes. Diversification is the best way to reduce risk while we work toward long-term outcomes.

Invest In Companies You Can Own For Generations, Not Days

Many investors want to own stock in new companies selling trendy products. But successful investors must be patient and remain consistent, regardless of what’s going on in the world.

That’s why our best investment ideas tend to be well managed companies that have temporarily fallen out of favor.

Where others watch market trends and forecasts, we look for companies with proven track records and strong balance sheets. The fact that we are often in the minority in that thinking allows us to take advantage of the short sightedness of others.

Methods And Outcomes

How Our Philosophy Shapes Our Investment Decisions


Stocks Provide A Great Way To Grow Assets Over Time.

All Compass equity portfolios feature value-oriented companies, and investment strategies range from conservative to aggressive depending on your goals and risk tolerance.

For example, if you’re a conservative investor, your portfolio might include larger, well-seasoned companies with higher dividend yields, while an aggressive portfolio could feature companies from more dynamic industries.

Our equity portfolios typically hold at least thirty stocks diversified over eight industry groups. Instead of buying mutual funds, we purchase individual securities. This allows us to manage your portfolio more precisely and with greater tax-efficiency.

Fixed Income

Bonds Are Contracts With Corporations And Governments That Provide Income And Are Less Volatile Than Equities.

As a non-institutional investor, we have more choices, and are able to buy bonds that others neglect. This can result in higher yields and income.

Instead of bond mutual funds or ETFs, we prefer a diversified portfolio of individual bonds with actual maturity dates.

This allows us to reinvest the proceeds at higher yields, rebalance portfolios without having to sell securities in volatile markets, or provide cash for clients living from their investments.

Balanced Accounts

Many of our clients’ objectives involve a combination of growth, income, and security. In order to achieve these goals, we develop portfolios that include stocks for growth and income and bonds for income and security.

The proportion that goes into each asset class is adjusted based on these objectives. Portfolios are managed for taxable and tax-free income, and adjusted to satisfy risk tolerance.

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