Investment Approach
Robinson Wealth Advisors, like many successful investment advisory firms, follows a core investment philosophy. These fundamental principles guide the investment decisions we help our clients make.
- Investments are used to pursue long-term goals, while savings are used for short-term goals.
- Asset allocation, with a diversification among stock, bond and other markets, help minimize risk.
- Investors should know how their investments fit into their portfolios and why they own particular assets.
- Minimizing investment cost is crucial for long-term success.
- An investor's primary decisions involve choosing a mix of assets to be held in a portfolio, not the selection of individual investments.
- Risk is multi-dimensional. Investors should weigh "shortfall risk" - the possibility that a portfolio may not meet long-term financial goals - against "market risk," - the reality that returns may fluctuate.
- Market-timing and performance-chasing are not part of a winning strategy.
- Future long-term returns are expected to be very similar to historical returns for various asset classes and subclasses.
Asset allocation does not ensure a profit or protect against a loss.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.