Your Financial Peace of Mind

Financial market history is a history of cycles (or like the swings of a pendulum), moving from one extreme to another. Market history teaches us that undervalued assets can fall further, and overvalued markets can overshoot even further on the upside. It is simply the reality that comes with being a long-term investor.

Our investment philosophy is based on the belief that fundamentals ultimately drive investment returns. This gets down to the economics of the investment. Specifically, whether we’re evaluating stocks, bonds, or another asset class, the value of an investment is generally determined by the cash flows the investment generates over time. This type of valuation, unfortunately, is a very poor short-term market indicator. But over the longer term and over full market cycles (five to 10-plus years), history has shown that fundamentals are a powerful driver of returns. Buying undervalued assets pays off over time, but you need to withstand the discomfort that typically accompanies it as you wait for markets to turn in your favor.

We are often asked about the latest short-term hot topics in the investment arena and always base our responses on the same strategies and core principles. By sticking to a sound investment plan and avoiding emotional investing, crises can be worked though. Our portfolios are well positioned to generate solid returns over a long term horizon, but we think it is prudent to be prepared for potentially increased market volatility and downside risk (as well as positive returns) over the shorter-term. In other words, we believe the key to successful investing ahead is to maintain the healthy patience, perspective, and discipline necessary for long-term investment and financial success.

We are convinced that slow-and-steady will win the race. By sticking to solid asset allocation, our diversified portfolios may not hit every homerun, but the gains will outweigh the losses. Our game plan is based on asset allocation and diversification. We’ve chosen seasoned fund managers that have their own proven strategies. We rebalance, cutting back our stake in what has already outperformed and investing more in the areas that are most likely to perform next. It is inevitable that markets become out-of-balance from time to time, but we believe that certain market fundamentals are solid, and over time, market balance will return. We employ these same basic principles time-and- time again.

At Davenport Watts & Drake, we construct portfolios based on a carefully defined investment discipline that incorporates tactical asset allocation and diversification within a risk framework. Periodically, the portfolio is rebalanced, and along the way we use our collective expertise to minimize income taxes through the appropriate investments. In times where powerful macro forces are shifting the economic landscape, a solid foundation of core beliefs and investment strategies are essential to long-term investment success. Through these core beliefs, investment strategies, and team approach, Davenport Watts & Drake works together to help ensure financial peace of mind.

Core Strategies

  • Asset Allocation
  • Asset Diversification
  • Periodic Rebalancing
  • Long-term Perspective
  • Minimize Income Taxes

Investment Custodians

  • Fidelity Investments
  • John Hancock