Bogue Blog ::

Frequently Asked Questions

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bogue e-news ::        

Bogue Asset Management’s Quarterly Investment Letter In my latest newsletter I discuss how my tactical overallocation towards overseas stocks and non-core US bonds paid off and I continue to see headwinds in the return potential of U.S. stocks over the next five years .........[See More]

    

How your advisor is compensated does matter.  Lately there has been a blurring of the lines with the use of the term “Fee-Based” to describe how one is compensated.  I’ll tell you why Fee-Based is not Fee-Only and the difference can be substantial: [See More]

 

    

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Investment Management Philosophy

Bogue Asset Management has the following core beliefs concerning how to manage money:

- We have a boring, disciplined investment management process designed to build wealth over the long-term to achieve your lifetime goals.  If you want excitement, retain a broker.
- Costs count, therefore we use investment vehicles for our conventional stock and bond strategies that tend to be cost efficient relative to their peers. 
- The investment strategy should be dictated by one’s goals and the strategy in place to achieve one’s goals.  When one begins to let their performance dictate their strategy and investment decisions, that’s when the bus goes off the cliff.
- We believe that asset allocation; the composition of stocks, bonds, cash and other asset classes will be the predominant determinant of returns over time.
- We believe in a strategic asset allocation model, where the breakdown of asset classes and corresponding sub-classes are set at a targeted percentage and allowed to fluctuate within certain parameters.  Within these parameters we allow the portfolio to be tactically “leaned” more or less towards asset classes and sub-classes depending on their over or under-valuation relative to other asset classes and historical norms.
- We believe in adjusting the underlying asset allocation only in correspondence with your goals; reducing risk if you are ahead of the game and only increasing it if we have to.
- We believe that markets are efficient over the long-term, but tend to be inefficient as the time horizon decreases
- We believe that one should invest in lower risk vehicles for cash flow funds needed within a five year time period.
- We believe the use of open end mutual funds and exchanged traded funds will provide better results than individual selection of stocks and bonds. 
- We feel that investing to “beat the market” is folly and adhering to this approach is only going to increase the chance of you failing to meet your goals
- We do not believe in timing the market; there is no statistical proof that this can be done effectively and consistently over time.
- Our approach is research based and we follow policy and approaches that have been proven to work over time and avoid strategies that have no substantiated proof to work
- We believe that passive (index based) investing is best suited for pure equity investments and less efficient for bonds and other alternative strategies.
- We believe you can’t confuse certainty with safety.  Nothing in life is guaranteed.  Cash and vehicles with guaranteed principal protection can actually lead you further away from your goals.  
- We believe risk is a common element in our everyday lives.  We can manage it, but not fully eliminate it. 
- We believe from a behavioral finance perspective, individuals (often assisted by the financial media) can inflict far more damage to their portfolios than the market can.
- We believe in investing and feel that we provide no value if you want to speculate.  
- We take very little credence in the reporting and advice generated by the financial media