Unconventional Investor, LLC - Philosophy

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Priorities

Combining a proven investment strategy with an unconventional, low-cost business model, clients enjoy avove average results. The rationale behind the use of the term “above average” is that the stock market is a zero sum game, meaning that, in aggregate and by definition, investors earn market returns less expenses and taxes. Investors using low cost, tax efficient Vanguard index funds will outperform those who pay higher expenses or taxes. The specific strategy, developed by the Yale University Endowment Chief Investment Officer, David Swensen, reflects the piercing clarity of his thinking. This strategy carefully targets specific asset classes using Vanguard index funds. This approach, generically called strategic asset allocation, is not new and is firmly grounded in modern portfolio theory. Mr. Swensen's unique contributions are the specific asset classes he includes and excludes from the portfolio, and the specific Vanguard index funds used to construct a simple long-term portfolio. Mr. Swensen is no way affiliated with Unconventional Investor, LLC.

Once determined, a client's target allocation is maintained via rebalancing and carefully directed new investments. Only when time horizons or circumstances change does the target allocation change. This approach is neither contrarian nor momentum oriented, but rather accepts that long term market returns are sufficient. Over time, stock markets around the world have returned ~10%. Returns in that area, plus steady savings, will help investors meet their long term goals.