Our Investment Strategy

At Stone Asset Management, we focus on long-term investment principles and avoid short-term market timing.

We assist our clients in defining their risk tolerance and then develop a sensible and prudent asset allocation strategy for their portfolios. After detailed interviews with each client, we customize each portfolio based on investment time horizon, cash flow considerations and overall investment objectives and goals. We then backtest our proposed investment strategy to gauge how it most likely would have performed in prior years, both on a periodic and compound basis, and compare our proposed strategy to the existing investments and appropriate benchmarks.

Once we have developed and agreed to an appropriate asset allocation strategy through a written Investment Policy Statement, we select no-load mutual funds with strong long term performance for their class. We screen our funds for risk adjusted returns, management experience, expense and turnover ratios. We periodically re-balance the portfolios to ensure that the investments coincide with the recommended asset allocation strategy.

We do not try to guess which sector or stock will be the "hot" pick. We instead prioritize long term investment fundamentals and a strict adherence to the asset allocation strategy we have designed for each client.

Behavioral Biases and Investment Implications

The link below goes to a 20 minute video, produced by Dimensional Fund Advisors called "Behavioral Biases and Investment Implications" and is an excellent primer on individual investor psychology. It provides insight into Stone Asset Management's focus on long-term, systematic and discipline-based investment strategy. We invite you to watch the video and contact us with any questions to learn more about us.

Watch Behavioral Biases and Investment Implications video now