Investment Philosophy

GOLLIHUGH FINANCIAL SERVICES
4 DUNNINGTON COURT
SPRINGBORO OHIO 45066
937-748-4504



How an investment performs hinges on many factors. Some can't be controlled—the returns of the markets, for example. But others can be—such as how you approach investing, the factors you deem important in developing portfolios and keeping them on track, the cost of the investments, and what you look for when choosing investments. I believe focusing on the factors that can be controlled is the most effective way to ensure investment success over the long term.

Building and maintaining a portfolio

• Investing is a long-term proposition. An approach based solely on short-term trends or performance is not an "investment philosophy." The risk of price declines—and investors' inability to successfully time the markets consistently—is too significant to hazard money needed for short-term goals.

• Asset allocation and diversification are musts. Research suggests that the most important investment decision is not the specific investments you select, it's asset allocation—that is, the mix of stocks, bonds, and cash you recommend. Being broadly diversified, with exposure to all parts of the stock and bond markets, reduces the amount of risk.

• Costs matter. All else being equal, investments with consistently low fees and transaction costs can give you a head start in achieving competitive returns. Fees create a drag on returns that can make it more difficult to add value, and high turnover can drive up costs and lower tax efficiency.

• Experience counts. A history of successful investing, through good markets and bad and through numerous market cycles, is a tremendous asset for financial planners, and investors.

• Continuity promotes success. Excessive turnover of assets within a portfolio, can reduce overall account performance.