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Investment Management

Our investment strategy is based on 4 core principles:

1. Long-term success

Warren Buffet has said that his favorite holding period is forever. At Stillwater Financial, we invest for the long term and don't believe jumping in and out of the market.

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2. Low-cost investments

The cost of each investment can erode your investment performance. Keeping costs low is a big advantage over the long term.

Think of your investments like a bar of soap, the more you touch it, the less there is of it.

A typical mutual fund can have layers of fees. These include:

  • 12b-1 fees

  • Transaction fees

  • Commissions

  • Fund management expenses (expense ratio)

Higher cost doesn't equal higher performance. Stillwater Financial uses low-cost indexed mutual funds from Vanguard and Dimensional Fund Advisors which have a single, low expense ratio.

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3. Correct mix of investments

A proven way to reduce investment risk is to spread out your money. Remember the old adage, "Don't put all your eggs in one basket"? Well, it's actually a very true statement when investing and it's called diversification.

 

How many baskets is enough and how much should be in each one? A Nobel prize was won answering these questions.

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Another great way to reduce risk is by balancing your investments between stocks and bonds. This is called allocation. 

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