Investment Management Philosophy
Good Decisions Come from Good Plans
At Parr Financial Solutions, we manage our clients’ portfolios in the face of economic and market uncertainty by:
- Understanding personal risk tolerance and cash flow needs.
- Applying that knowledge in the design of a customized, diversified portfolio whose purpose is to:
– Enable clients to achieve their lifestyle goals and
– Maximize long-term, risk-adjusted returns.
Our investment management philosophy is driven by top-down, macroeconomic analysis. We also incorporate bottom-up fundamental analysis and the principles of value investing developed by Benjamin Graham and David Dodd in their classic 1934 guide, Security Analysis. Among the key concepts of value investing are that price matters and that there should always be a “margin of safety” built into investment decisions. Fundamental analysis focuses on investments that trade at a discount to book value, have high dividend yields, or have low price-to-earnings ratios.
Our core principles of investing are:
- Do not take more risk than you need to meet your goals.
- Liquidity matters. Your portfolio should be structured properly to meet short-term and long-term goals.
- The best way to optimize long-term returns is to produce steady, consistent results. Avoiding catastrophic loss on the downside is more important than maximizing gains.
- It is not possible to achieve optimal long-term investment results consistently by following a short-term tactical investment strategy that attempts to time the market.