My experience in investment management has taught me a lot. One thing I’ve learned is that generic solutions don’t exist in the industry—nor should they. I believe it’s vital for every advisor to build a practical, sensible philosophical approach as they gain experience.

On that note, here are some of the most important parts of my philosophy of investment management.

Focus on the Client As an Individual

There’s no one-size-fits-all solution for investment strategies. A young person entering the workforce for the first time may have different objectives than someone who’s about to retire. For that matter, they’ll have different goals than other people of the same age.

Listen to each client’s story and priorities, and find solutions that best align with their individual needs.

Give Due Attention to Asset Allocation

Investment management is subject to ever-changing external factors. Economic shifts, political turbulence, and regulatory changes directly impact asset valuation. Some classes become overvalued, while others may be underpriced.

Professional financial advisors must stay on top of situational changes that can affect their clients’ investments. When conditions dictate changes in asset allocation, they must have the knowledge and flexibility to make them. Anything less is a disservice to the client.

Know the Right Time for Aggressive and Conservative Approaches

The global economy works in cycles. Sometimes it pays to be more assertive with investments. Other times, it’s better to hold off and be more cautious.

Knowing when to move forward and when to hold back on new investments requires both initiative and restraint. As you observe market cycles over your career, note which circumstances favor bold or cautious moves.

Manage Risk Responsibly

The most important goal in investment management is preserving the client’s capital. To meet that objective, it’s imperative to evaluate risks accurately.

I’m an advocate of keeping losses limited and letting profits run. I believe it’s important to unload a losing asset quickly before its value declines further. I also believe in holding on to winning assets as they appreciate to make the most out of their long-term gains.

Combining this strategy with discipline and awareness of your client’s level of risk tolerance is the key to investment success. While it’s good to note and even take a little credit for a win, it’s equally important for an advisor to admit when they’ve been wrong.

Know How the Portfolio Fits With the Client’s Overall Finances

To build a solid investment portfolio, you must get to know your clients and their unique financial profiles. What are their income sources? What’s their debt situation? How much risk can they tolerate?

Again, every client has distinct objectives for investing. Their portfolio should reflect and serve those goals to safeguard their finances.

Eliminate Emotions to Stay Objective

Emotion may be the number-one enemy of effective investment management. Panic-selling when the market takes a sudden dive is almost always a mistake. So is quickly buying into a quick-rising position from fear of missing out.

Short-term feelings should never dictate a long-term investment strategy. Be objective in your analysis to avoid selling too low or buying an overpriced hot commodity.

Understand That Clients’ Lives and Goals Change

Even your most steady clients are going to experience changes throughout their lives. The events that befall them and the milestones they hit can impact their investment strategies. It’s crucial to factor in those changes when shaping their portfolios.

Set Solid Investment Management Goals

Starting my own investment management firm was one of the best decisions I ever made. Serving people in Connecticut, California, and across the United States as a fiduciary, fee-only financial advisor, there are no prefabricated sales goals or quotas to meet, and I’m not forced to push proprietary products or services on my clients.

Instead, my job is to make investments according to my clients’ situations and financial needs. That’s an incredibly liberating approach for me, and I can assure you that my clients appreciate it as well.

Blair Capital Management is here to help you build a dependable investment strategy. The financial services I offer help you optimize your financial circumstances and prepare for your financial future with confidence and clarity.

Interested in getting in touch? Call (914) 413-9904, email johnblair@blaircapitalmgt.com, or schedule an appointment here. I look forward to speaking with you!

About John

John Blair is President and Founder at Blair Capital Management, LLC, a Registered Investment Advisor (RIA) that endeavors to offer personalized service and customized investment solutions to individuals, trusts, and high-net-worth investors. After over 40 years of experience in the financial markets, John has had a front-row seat for every bull and bear market and wants to offer his experience, knowledge, and skills to individuals rather than institutions. With an unwavering dedication to acting as a fiduciary and a desire to build long-term, successful relationships, John helps his clients pursue their financial objectives. He cares deeply about safeguarding and growing their wealth, so they can focus on their lives—not their money. He strongly believes in a disciplined approach to investing with paramount importance placed on preservation of capital and measuring risk and reward through all circumstances.

John holds a bachelor’s degree in economics and master’s degree in business administration from the University of Southern California, and also completed graduate work in economics and philosophy. John and his wife of 45 years have four grown children and 13 grandchildren. In his spare time, he loves to read biographies and books about history and finance, and is a huge horse racing and football fan. John cheers for everything University of Southern California, and has been very involved in alumni affairs and mentoring students.

Blair Capital Management LLC (Blair Capital) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Blair Capital and its representatives are properly licensed or exempt from licensure.

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. All investments include a risk of loss that clients should be prepared to bear. The principal risks of Blair Capital strategies are disclosed in the publicly available Form ADV Part 2A.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

For additional information, please visit our website at http://www.blaircapitalmgt.com