Investment Strategy

We believe a broad, diversified portfolio of securities is the best strategy for investors to achieve superior risk-adjusted returns.  This belief is rooted in the Modern Portfolio Theory of investing which attempts to maximize return for any given amount of portfolio risk by using prudent diversification and sector weighting strategies.

We believe that investing should take full advantage of what has proven over time to be the essentials of long-term success:

  • Diversification
  • Tax Efficiency
  • Low Turnover
  • Minimization of Fees and Costs
  • Utilization of Academic Research
  • Discipline & Resolution
  • Not Attempting to Time the Market
  • Not Chasing Performance

In order to maximize returns and give clients the best opportunity for success in achieving their goals, we manage assets with a long-term focus.  In our approach we:

  • Minimize costs in order to maximize the powerful effect compounding has in building wealth.  Even small costs can have a large effect over time and a vigilant approach to cost containment is essential.
  • Keep turnover as low as possible to help stay the course and avoid unnecessary transaction costs.
  • Maximize tax efficiency in all that we do for clients.  Whether ensuring investments are held in tax efficient accounts or selecting investments that are managed in a way that seeks to minimize tax effects.
  • Execute periodic rebalancing in a manner that ensures asset allocation parameters are maintained and costs and tax consequences are minimized.  Rather than rebalancing in rote fashion, we strive to continually bring maximum efficiency to the process.

At Granite, we help clients manage their assets for the long term with a consistent, coherent and disciplined approach.  Above all, we are committed to building wealth over time by avoiding the great enemies of wealth accumulation: hype, emotions, fads, fees, taxes and chasing performance.