Our Strategy
Finances are complicated - whether it be investments, taxes, retirement planning, estate planning, income planning, insurance, charitable bequests. At various times in your life many of these issues will intersect. We help you structure and integrate them into a streamlined plan that encompasses both a broad vision and detailed plan.
Our objective at Black Point, is to guide you through the financial choices in life. With over 30 years of experience in this field, we have a deep understanding of client needs and planning solutions.
We’re here to show you step by step, which strategies will be most beneficial to you. We believe in our well-researched, academic approach, so let us share our investment strategy with you.
Our investment philosophy is an academic factual approach rooted by Nobel Prize winning economic research. The process is previewed below and involves translating financial science into practical investment solutions. We build portfolios along the dimensions of expected returns in a cost -effective manner. To be considered a dimension of expected return, a premium must be:
- Sensible
- Persistent
- Pervasive
- Robust
- Cost-effective
Image. 1 Dimensions of an Expected Return
Expected returns are driven by prices investors pay and cash flows they expect to receive
Image 2. Historical Observations of Five-Year Premiums
Equity, size, relative price, and profitability: US Markets
Image No. 3 Historical Performance of Premiums over Rolling Periods
US Markets
We take Fama’s research, now led by Dimensional Fund, and apply it to our clients where it makes sense. Once we have a clear understanding of your your financial goals, we can set you on a path towards achieving them.
Source: Dimensional Fund Advisors LP. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. Past performance is no guarantee of future results. Investments are subject to risk, including the loss of principal. Some investments are not suitable for all investors, and there is no guarantee that any investing goal will be met. Talk to your financial advisor before making any investing decisions.