Investment Philosophy

Plan with Discipline & Coach with Care
A plan is only as good as one’s ability to execute upon it.  Frequently however, the amount of risk and market volatility one can financially afford varies from the amount one can emotionally withstand.  Further, risk tolerances and investment plans may need to change over time as client circumstances change.  When an investment plan is designed properly, it can achieve its objective over time; however, if market volatility causes too much distress and the plan is abandoned, then it may not fulfill the entirety of its purpose.  We believe that our responsibility is multifaceted - advise the better plan to achieve a long-term outcome and coach the client through the plan's execution to avoid poor decisions based upon emotions.

Long-Term Perspective
According to academic research, asset allocation determines the majority of the expected long-term return of investment portfolios.  By finding the right balance of investments and maintaining a long-term view on capital markets, expected portfolio returns and volatility can be managed to each client's specific financial objectives and risk tolerance.

Investing based upon predictions of short-term fluctuations in capital markets, otherwise known as market timing, is synonymous with gambling, and will never be a practice at JRM Investment Counsel.

Invest as a Business Owner - Value Oriented & Credit Conscientious
Price is what you pay and value is what you get.  When evaluating equity securities, we contend that it is better to evaluate the entirety of the business’ value first, taking into consideration our analysis of its value relative to its market price before investing.  Within each asset category, we look for businesses we can understand that have durable competitive advantages and are priced attractively.

 

When evaluating fixed income securities, our primary focus is yield spread relative to financial credit.  We do not solely rely upon the public credit ratings of securities and conduct our own analysis of company or municipal credit before investing.

Taxes and Costs Matter
Taxes, trading commissions and fees are all costs that affect investment returns.  Simply put, they matter and the more costs one incurs the more challenging it is to achieve investment goals and objectives.  We will always strive to build and manage portfolios to be as tax and cost efficient as reasonably possible without compromising a client’s investment objectives.

A transparent and fair structure for custodian and investment management fees is important as well.  Our custodians provide high quality trade executions at low costs.  Finally, as a general rule, JRM Investment Counsel does not, nor will ever, accept compensation, whether direct or indirect, from the wide landscape of investments we consider for our client portfolios.  The only compensation we receive is the investment management fee paid directly by our clients, and in our opinion, is very fair relative to the value we provide.  For more information regarding our compensation and fee structure, we welcome you to read item 5 of our Firm Brochure (Form ADV-Part 2A), which is on file with the U.S. Securities & Exchange Commission (SEC).

 

 

Learn more about the Firm by visiting Core Guiding Principles, Consultative Process and Portfolios.

 
 
 
 

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