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Intense research.
Managed risk.
One Flat Fee.

Investment Philosophy

Most advisors hold thousands of stocks in a variety of funds for their clients. Bogged down by high fees and over-diversification, the results are average at best. Diversification is important. However, numerous academic studies have shown that the reduction of risk on a portfolio is minimal after 20 to 30 stocks. At Smart Path, I limit client holdings with the goal of achieving above-average returns while minimizing risk through smart diversification.

Investment Management

1% of Assets Under Management.  Maximum Fee: $12k per year.

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.

Registered Investment Advisors (RIA) provide many benefits as they have a fiduciary duty to act in their clients’ best interest. However, they often fall short when it comes to fees. Charging a standard fee of 1% of the value of a portfolio, an individual with a $2 million will be charged twice as much as someone with a $1 million portfolio. Yet, the work for the adviser doesn’t change much.

High fees hinder investment return. Just a 1% fee on a $1 million portfolio growing at 6% over 20 years is nearly $400,000! Most advisors will also invest in mutual funds that charge between 0.5% and 1.0% which puts a further dent in your investment returns. 

At Smart Path Wealth Management, the focus is on lowering client fees without sacrificing returns.

 

How does this fee structure compare to the industry?

Portfolio Size
Average Advisor Fee (%)
Average Advisor Annual Fee ($)
SPWM’s Annual Fee
$500,000
1.05%
$5,250
$5,000
$1,000,000
1.02%
$10,200
$10,000
$2,500,000
0.88%
$22,000
$20,000
$5,000,000
0.84%
$42,000
$20,000
Source for Average Advisor Fees: Advisory HQ

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

High pricing power and returns on capital are sign of a powerful moat.

Consistent Growth

Above average growth in revenue, cash flow, and/or dividends

Strong Company Culture

Happy employees with a shared vision leads to happy shareholders.

Strong and Aligned Leadership

Nothing is more important to investment success than the people at the helm, especially if their compensation is tied heavily towards the success of the company.

Market Opportunity

Businesses serving a large and growing market have a long runway for growth.

Financial Strength

A healthy balance sheet with sustainable cash flows ensures the business can re-invest in its future, fend off competition, and survive the nastiest of recessions.

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.

It's time.
I can't wait to help you!

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