Intense research.
Managed risk.
ALIGNED Fee.
Investment Philosophy
Most advisors hold thousands of stocks in a variety of funds for their clients. Bogged down by high fees, conflicts of interest, and over-diversification, the results are average at best. At Smart Path, I focus on minimizing fees, and limiting client holdings with the goal of achieving above-average returns. Diversification is important. However, numerous academic studies have shown that the reduction of risk on a portfolio is minimal after 20 to 30 stocks. Through smart diversification in great businesses, I look to minimize client risk without sacrificing returns.
Investment Management
SHARED INCENTIVES. TAX EFFICIENT GROWTH. LOW FEES.
According to a survey by the CFA® Institute, 40% of wealthy individuals who do not work with an adviser believe that the cost of professional wealth management is too high.
While a 1% investment management fee is standard, managed portfolios suffer from hidden fees. Under-performing mutual funds with high sales & management fees can be a significant headwind to reaching your financial goals. A lesser known cost form mutual funds include taxes on capital gains. A fund with high turnover that doesn’t let their winners run may have heavy capital gains.
Guess who is getting that tax bill?
At Smart Path Wealth Management, the focus is on investing in individual stocks which now have zero commissions. Letting winners run and deferring taxes is a focal point of our investing strategy. Tax-loss harvesting and charitable donation strategies are also utilized to ensure you are keeping more of your wealth.
Furthermore, our incentives are aligned. Our earnings grow if your investments grow. If your portfolio decreases, so does your fee. Therefore, growing and protecting your wealth is aligned with growing and protecting our wealth.
aligned fee structure
Portfolio Size | Asset Management Fee |
|---|---|
First $2 million | 1.0% |
Above $2 million | 0.5% |
Let's get there sooner
Controlling costs is one of the most important aspects of long-term growth. With your best interests as my top priority, Smart Path’s fee structure is designed to keep your costs low so you can reach your financial goals sooner.
How I pick stocks
Future returns are very dependent on the price you pay as well as the quality of company.
When picking stocks for a portfolio, I look for companies that have as many of the following traits:
Sustainable Competitive Advantage
Consistent Growth
Strong Company Culture
Happy employees with a shared vision leads to happy shareholders.
Strong and Aligned Leadership
Market Opportunity
Financial Strength
Selling Philosophy
Each purchase will be made with the intent to hold for a minimum of three years. Because of a high degree of diligence taken to purchase a business, the decision to sell a stock will be an irregular occurrence. However, a sale will be made if any of the following was to occur:
- The company no longer meets the criteria which initiated the ‘buy’ decision.
- There is an alternative with more market-beating potential.
- The stock valuation does not support the business potential.
Although one of the sell triggers will be finding an alternative business with more market-beating potential, rarely is a sell decision made due to a run-up in stock price of a current holding. It is my experience that stocks that have significantly increased in price do so because they are a great company. My trust will be put in management to continue to deliver market-beating returns on capital. I am a firm believer in letting winners run and even adding to winners over time. The opposite can be said of losers. If a stock has declined over a reasonable period of time, I will look to see if it is because its business thesis has been compromised.