HOW WE INVEST
Palisade’s investment strategy is guided by the following four principles:
PRINCIPLE #1Equity-centric Allocation
Palisade allocates its client portfolios heavily towards stocks due to their superior historical returns. No other asset class has come close to delivering the long-term historical returns of publicly traded equities.
“The individual investor should not underestimate the long-run risk of not owning enough equities.”
Charles D. Ellis
Author, "Winning the Loser's Game: Timeless Strategies for Successful Investing"
PRINCIPLE #2Long-term Focus
Palisade maintains that the best way to weather the short-term volatility of the market is to remain invested for the long term. Our goal is to help our clients stay appropriately invested when everyone else is pulling out and locking in their losses.
“The stock market is a device for transferring money from the impatient to the patient.”
Warren Buffet
Chairman and CEO of Berkshire Hathaway
PRINCIPLE #3Comprehensive Diversification
Palisade systematically diversifies its client portfolios across all industries, capitalizations and geographies. Palisade’s goal is to capture the market return, which can only be achieved by owning the market.
“Diversification is the only free lunch in investing.”
Harry Markowitz
Father of Modern Portfolio Theory
PRINCIPLE #4Tax & Fee Efficiency
Palisade considers it a core fiduciary responsibility to minimize the taxes and fees their clients pay, and proactively controls expenses in order to maximize their client’s after-tax, after-expense returns.
“The miracle of compounding returns is overwhelmed by the tyranny of compounding costs. Fund performance comes and goes. Costs go on forever.”
John Bogle
Founder of the Vanguard Group