Wealth Management

At Summit Wealth Advisors we believe that our investment philosophy serves as the basis for the investment solutions we provide our clients and is predicated upon the following four philosophical tenets:

  1. Investment decisions should be made with a long-term perspective
  2. Portfolios should be constructed to achieve diversification including global risks
  3. Valuation considerations should drive investment decisions
  4. Skillful active management has the potential to add value

Long-Term Perspective

We approach investing with patience and discipline, focusing on long-term goals and relying on fundamental truths of investing exhibited throughout history.  We understand that short-term fluctuations in price and performance do not always reflect true values and that investor fortitude through difficult cycles is often rewarded over time.  We do not define risk simply as market volatility, but rather understand volatility as a natural element of markets that provide opportunity to capitalize on mispriced assets.

Diversification by Risk Exposure

The primary means of crafting an effective portfolio diversification is to meaningfully allocate to differing risk exposures.  We believe diversification between and within each category should be sought, and that portfolios should be diversified globally to help effectively mitigate risks. There are four broad categories we implement in our portfolios, each of which serves a different role in the portfolio:

  • Fixed Income – Total return and deflation protection
  • Real Assets – Total return and inflation protection
  • Equity – Total return and diversification
  • Global Equity/Income – Total return and income

Valuation Oriented

Valuation drives investment decisions across all asset categories and asset selection.  Prices do matter to overall return.  Value investing can help lower a portfolio's risk by building in a margin of safety when assets are purchased below their true value.  Value investing often requires a contrarian mindset as investing against prevailing trends is not always comfortable, but we believe that achieving strong long-term performance requires a willingness to diverge from the consensus and allocate capital when it is most difficult.

Active Management

In some areas, a passive allocation is suitable to efficiently gain market exposure at competitively low costs.  However, opportunities exist for managers with unique capabilities to add value through strategies that are not simply a representation of the market.  We believe that strong investment results are most likely found with active managers that have aligned their interests with that of their clients.  Exceptional active managers can help enhance returns through expertise, skill, and employing a value-oriented approach.  These managers have the ability to expertly invest in complexity, where their knowledge, better use of information, and access to unique opportunities allows them to wisely recognize and execute on investment opportunities. 

Diversification and asset allocation strategies do not assure profit or protect against loss.