Investment Philosophy
Additional Resources
Connecting Clients with Great Investments
At CIM Financial Group we believe that each client is unique and requires careful attention in building and managing their investment accounts. The job of an Investment Advisor is to know the client well and what investments suit them, to know great investments and asset managers, and then to bring them together.
Value & Time
CIM takes a long-term approach to investing that is value oriented. We believe that taking ownership of great investments when the price is attractive, and then holding for the long-term will provide the best results. By taking a long-term approach we feel that it is in the client’s best interest to ride out the inevitable market corrections that occur every year. Initiating positions when the price is down hopefully reduces price corrections, but if an investment falls further in the short-term it provides an opportunity to buy more.
Diversification
One way to reduce risk is by owning different asset classes such as stocks, bonds, commodities, and real estate. It has been proven difficult to predict which asset class is going to outperform in any given year, so by dividing accounts into different types of investments, market volatility is reduced.
Diversification can also be realized within a given asset class. Stocks, for instance, can be divided by size such as small, medium, and large companies; slow-growth, fast-growth, cyclical, and high-yield companies; and finally international and emerging market companies.
Concentration
While diversification reduces volatility and risk it may also diminish long-term returns. Investors who concentrate their accounts with stock investments are likely to experience a higher long-term rate of return than those that include bonds in their accounts. The price for this higher long-term return is greater price fluctuations and potentially deeper losses during bear markets and corrections. Investors who choose to concentrate their accounts must be willing to stay the course without selling during these downturns; otherwise they will be better off with greater diversification.
Communication & Service
By understanding the client as well as the market and economy, CIM is able to give unbiased advice regarding proper diversification or concentration. Understanding the desires of clients requires regular communication and service. This should occur not only at the beginning of the client/advisor relationship, but even more importantly, throughout the year as client circumstances and market conditions change.
