Our “Why” • On Market Timing • Research and Process
Monthly AIRE Perspectives – November 2022
Dear Friends and Valued Clients,
Please see below for The MAP – Monthly AIRE Perspectives for this month.
Our “Why”
For those of you who have not seen this talk, we wanted to share one of the most captivating talks we have seen regarding business in general, and one that is among the most popular TED talks of all time. If you are a business owner or professional in any field, this is an excellent video featuring Simon Sinek, on “How Great Leaders Inspire Action.” You can click here for the video. We hope you take a moment to view the talk, as this is what we aspire to every day.
November 20th marked the second anniversary of our firm. As we reflect on this occasion, we feel especially grateful to our clients and wanted to share with you our “Why.” We created this firm from the client outward, meaning the entire foundation of our company is based upon what we feel should be the ideal client experience:
We believe that advice should be given without the conflict of interest that can arise from commission incentives. As a fee-only advisory firm, we serve as a fiduciary and never receive compensation or incentives of any kind on any investment. (This does not apply to life insurance, as there is currently no other way to purchase life insurance other than through a commission structure.)
We believe that we should advise clients on all aspects of their financial lives, and on all types of investments (not just stocks and bonds), including real estate, alternative investments, 401(k) assets, and even assets not under our direct management. We aim to serve as your single source for all advice related to your wealth.
We believe that most public markets are quite efficient and have factored in virtually all information and predictions. Therefore, we invest by managing risk, planning and understanding the importance of asset allocation rather than by predicting or listening to the latest hot news stories.
At the heart of our investment philosophy is the belief that clients who are on track to meet their financial goals should invest more conservatively and manage losses rather than take too much risk to strive for greater returns. This does not mean that we avoid losses altogether, but that we prefer more diversified portfolios over concentrated ones.
We believe that it is essential to continually educate clients on the true nature of investing, ignoring hyped misinformation and instead understanding how investor behavior can impact finances to help avoid financial stress and pitfalls.
On Market Timing
If you have been working with us for any period of time, then you have definitely seen a lot of statistics and data from us regarding the dangers of market timing. We would like to share an excellent article by Dimensional Fund Advisors called “Time the Market at Your Peril.” This is a very brief but powerful article that reiterates many of our points and provides some excellent insights into this topic. Please take a moment to click here and read this 2-minute article.
Research & Process
Each year, in January and February, we conduct a comprehensive research project, during which we question all of our asset class choices in public markets, as well as the particular investments we have chosen for each asset class. We have started this research early this year and should have updates ready for you before the end of January.
In addition to the aforementioned research on public investments, throughout the year we continually search for potential investments in private markets, including private real estate, real estate debt, private equity, private credit and various alternative asset classes. During the course of each year, we meet with move than 100 companies, CEOs, managers, and professionals from all over the world, in an effort to isolate investments that we feel may be worthwhile.
In November, we met with CEOs and managers of funds at Ares, CIM and numerous other companies. We make it a point to meet regularly with the managers of any private funds we invest in, but we also spend a great deal of time exploring new potential opportunities. We look forward to updating you individually on our meetings and research.
We hope that you and your families enjoyed a very Happy Thanksgiving. Once again, we would like to thank you for your trust and loyalty, and look forward to speaking with you in the upcoming month.
The commentary and opinions expressed in our articles on this page reflects the personal opinions, viewpoints and analyses of the AIRE Advisors, LLC employees writing the article. The articles on our website should not be regarded as a description of advisory services provided by our firm or performance returns of any AIRE Advisors, LLC’s clients. Any past performance discussed in these articles is no guarantee of future results. The views reflected in the articles are general in nature and made to provide education about the financial industry. These views and opinions are subject to change without notice. Any mention of a particular security, sector, and related performance data is not a recommendation to buy or sell that security or in that sector. Our firm manages client accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the articles. To determine what kind of investments may be appropriate for you, please consult your financial advisor prior to investing. Also, please note that all investing involves risk and the possible loss of principal capital.
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