Our Investment Philosophy
Why was the Moffat Wealth Management Program Created?
For the overwhelming majority of people, creating wealth is the product of very hard work, combined with responsible and practical spending habits. Given the value of what it takes to earn and save, it is critical that net worth management be given an equally high degree of respect. When it comes to investing, anyone can buy a security, or act on a stock tip, the result of which is an account comprised of hot stocks tips with no correlation, nor predictability, leaving the future to chance or luck. Rarely do investors really consider the risk, consequences and the long-term effect of taking these chances versus the reward. The underlying premise of the Moffat Wealth Management Program is the active application of risk/reward in both portfolio management as well as the individual security selection within. It was created to offer a much higher degree of predictability regarding your investment assets, and an overall integrated approach to managing your net worth as a whole.
Why Net Worth?
Net worth encompasses all assets and liabilities including real estate, personal businesses, trusts, holding companies, employment granted options, lines of credit and loans. The allocation of annual savings should involve consideration of all elements of net worth. Most advisors automatically assume annual savings should be allocated to mutual funds or stocks or bonds. Making a proper capital allocation decision involves a variety of considerations such as investing in real estate, home improvement, a personal business or, at times, paying down debt. Evaluating decisions on a net worth basis leads to much better financial decision making, and is a far superior method to determine the use of capital. It has greater potential to lead to superior wealth creation.
