Investment Principles We Believe In

We are avid proponents of the free market system of business. Disruptions will come and will always be remedied over time. We remind ourselves to not panic when conditions get negative. We invest in the vision, resilience, intelligence, and greatness unleased by free enterprise. To participate in the safest, most suitable way, we incorporate the following money management principles:

The DO's

  1.  Maintain proper diversification - Asset classes have historically gone in and out of popularity in a cyclical fashion. We diversify our portfolio models while avoiding the temptation to "chase performance."
  2. Keep a long term perspective - Time in the market is more important than timing the market.
  3. Manage the Managers - We expect our managers to be above average in relationship to the category they represent. We diligently monitor how well they perform against their peers and replace them when they fail to do so.
  4. Consider Tax Complications when designing and maintaining portfolios
  5. Rebalance when necessary - When we rebalance, we trim overweight positions and add to underweight positions. This ensures that we obey the principles of "selling high" and "buying low" while minimizing volatility over time.
  6. Perform periodic reviews - To monitor and adjust portfolios based on client goals and objectives

The DON'Ts

  1. Single Position Concentration - Our experience has lead us to believe that overconcentrating in a particular sector or company stock or bond can lead to very negative consequences for investors. Many investors are tempted to ignore risk in an effort to chase performance by over-emphasizing exciting, trendy themes in their portfolios. When these "bubbles" burst and momentum reverses, losses can be staggering. 
  2. Timing the Market - We believe the risk in getting this wrong greatly outweighs the benefit of getting it right. Our experience has taught us that clients who make emotional decisions regarding their participation in and out of the stock market tend to sell at low points (when fear is the most compelling emotion) and re-enter at higher points (when the investing public starts feeling more comfortable.) This can have a devastating effect on returns. We believe a well designed portfolio will average higher over the years without the stress and liabilities of trying to "time the market."

In summary, we believe that a moderate approach combining stocks and bonds in a suitable portfolio is the best way for most people to accumulate and maintain wealth. At Veater Financial Group, it is our ongoing mission to provide the very best in portfolio planning and monitoring solutions to meet the needs of our valued clients now and in the future.

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