CSA Wealth Management, LLC
Professional Investment Management For Individuals And Businesses

1. We do not believe in the "buy and hold" philosophy of Wall Street. Instead, we believe you should buy and hold what is helping you and sell what is not. "Buy and hold" is a style of investing that was made popular in times of high, fixed rate commissions and tax rates as high as 90%. At that time it was so costly to sell that holding through declines made sense. Commission rates and taxes are low enough today that the cost of selling is no longer a key issue. You are in the stock market because you want to make money. By definition, losing money does not make you money. We believe you should hold your winners and sell the losers and weaker holdings, replacing them with stronger holdings.

2. While we believe that asset allocation can help reduce risk, we do not believe it to be the most effective means to minimize your risk. The accepted theory is that some asset classes will rise and others will fall in value in response to different factors and events. However, this works better in theory than in practice. There are many times when nearly every asset class declines in value.

Instead, we believe it is important to focus on the strongest holdings in the strongest groups, and then change course as they change.

3. We do not believe that past market leadership implies future market leadership. In fact, we believe it is a rare phenomenon. We believe that leadership is dynamic, and that new companies are always out there ready to push the current leaders aside and take their place. We want to find and own those companies early in their ascent.

4. We do not believe that most losses are unavoidable. Quite the contrary. We believe that risk can be measured, evaluated, and in most cases can be avoided before severe damage occurs. Risk cannot be eliminated. Loss cannot be eliminated. But they can be managed and reduced.

5. We do not engage in style box investing. Most investment managers specialize in a particular style - large cap growth, small cap value, short term bonds, etc. We believe that some type of investment is always doing well, but what type investment that may be changes constantly. For that reason, we do not concentrate on one "style" of investing. Instead, we focus on the goal. We want to find and own the new leadership because that is where we believe wealth is created. We will invest in whatever type of bond or company that we believe will help us achieve our goals of wealth creation and minimizing our risk.

6. We manage every account individually. Most firms use model portfolios, and every account looks nearly identical to one of the models. Although all of our accounts are managed according to the same overall philosophy, no two accounts look alike. When we accept a new account for management, it will be invested as the opportunities present themselves, rather than in an effort to duplicate existing accounts at current prices. We will include for future purchase those opportunites that fit with the account size, objectives, and restrictions, if any.
 

 

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ANIMATED VERSION

Phone: 276.634.0000 . Toll Free: 866.634.0018 . Fax: 276.634.5100 . E-mail: cindi@csawm.com
Postal: 729 Country Place Road . Axton, Virginia 24054

. CSA Wealth Management, LLC.