Investment Philosophy – Baron Wealth Management

Investment

Philosophy

Baron Wealth Management’s investment recommendations are based on Modern Portfolio Theory (MPT); a theory that has been in existence for more than sixty years.

MPT is a sophisticated investment decision approach that permits an investor to classify, estimate and control both the amount of expected risk and return. Fundamental to MPT is the ability to statistically quantify the relationship between risk and return, thus determining the extent of compensated risk.

Risk Reduction

Risk Reduction in Investment Success

Baron believes that risk reduction is a key element to long-term investment success therefore we implement plans by using strategic diversified asset allocation.

Strategic Asset Allocation is a lifetime investment approach, wherein selected asset classes and the weightings of these asset classes focus on the overall investment objective and risk tolerance of the client. Strategic Asset Allocation is a relatively passive investment style, wherein the assets and weightings are set and remain relatively unchanged. This strategy places a great emphasis on minimizing portfolio turnover and trading/transaction costs.