The Appletree Wealth Philosophy
We believe that a well-crafted investment plan should have two main components: diversification and selective risk.
We utilize a combination of investment vehicles, seeking to minimize fees when active management does not provide significant alpha, and conversely to exploit market inefficiencies in less liquid markets.
Not just diversification of securities, or sectors within an asset class, but diversification among classes themselves. Most investment managers only recommend stocks and bonds because this is how they are paid.
Our investment philosophy and fees are aligned to include not only equities and fixed income, but direct real estate investments, art and collectibles, and private business investments, among others. Early on in our process we will identify your family’s comfort level with varying types of investments and adjust your investment portfolio accordingly.
Active Vs. Passive
Most, but not all, asset classes have become extremely efficient with the advancement of technology over past decades. As such, there is less opportunity to achieve above-average risk-adjusted returns in these markets, and accordingly, we do not believe that paying an active manager to make individual security selections is prudent. In these scenarios, we believe that investing in lower cost investment products (such as ETF’s) is much more judicious.
In less efficient and liquid markets, such as real estate or emerging market fixed income, there is more opportunity to achieve above-average risk-adjusted returns, and we seek to take advantage of these opportunities through the hiring of experienced active managers.