Principles and practices. At the foundation of our success—and yours.
At Brighton Jones, our investment philosophy is based on human psychology, deep knowledge of financial theory, a keen awareness of history and a focus on current events.
Our investment principles are focused on managing risk and combining asset classes efficiently and cost-effectively. When we put them into practice, we allocate assets guided by sound judgment and deeply informed by your personal circumstances and preferences.
For investors, the importance of establishing and operating within the context of clearly-defined and well-articulated investment principles cannot be overstated. Fundamental investment principles provide the framework upon which investors build portfolios with the greatest probability of meeting their goals.
Capitalism creates wealth.
With capitalism, wealth is created when natural resources, labor, intellectual capital, and financial capital combine to produce economic growth. Individuals are entitled to a share of that economic growth when their financial assets are invested and used by the global economy. Successful investing does not require picking the right stocks or predicting opportune times to move in and out of the market.
Avoid uncompensated risks.
In capital markets, there is a positive relationship between risk and expected return. But not all risks are created equal. Some risks reliably produce higher returns given an appropriate time horizon, while others do not. Over time, the most successful investors will be those who are able to differentiate a calculated risk with a positive expected return from a speculative bet with a high probability of failure.
Diversify among asset classes.
To balance your exposure across multiple sources of return—and help you stay the course during adverse market conditions—we believe it is critical to diversify among asset classes. Each class must be weighted enough to matter, but also be limited enough to reduce any outsized impact. We’ve seen this type of portfolio achieve more consistent performance across a wider range of economic scenarios, again and again.
Diversify within asset classes.
We’ve all witnessed it. A company single-handedly creates and dominates a new industry—until its competitors catch up and take their own share of the profits. An all-inclusive market portfolio that’s diversified within its asset classes can help neutralize the unpredictable fortunes of individual companies, and position you to capture the returns of broader economic forces and wider market exposure.