Our Investment Philosophy and the Wisdom of Great Investors

Our Investment Philosophy is well grounded in fundamental global economic analysis and our experience in the real world of Investing. In addition, our interests are aligned  with our clients as we are substantial co-investors alongside our clients, which means we have skin in the game. It is our mission to grow with our clients, not to gain at their expense.
Our ultimate Investment objective is to preserve and grow client assets in order to meet retirement and legacy goals. Key factors involved in helping us to accomplish this are – 


Risk Tolerance | 
Time Horizon | Diversification | Liquidity | Investment Opportunity

 
Investors have many choices within the financial services industry. An industry that often fails its investors. At Wagner Financial, we take great pride in our family oriented firm that offers significant advantages, objective advice and personal service for all of our clients.
1. Be Patient and Think Long-Term

Warren Buffet

“The stock market is a device to transfer money from the ‘impatient’ to the ‘patient’.”

Warren Buffett,
Chairman, Berkshire Hathaway


 

Tune Out Short-Term Noise

Monthly Percentage Change

S&P 500® Index 1991–2015

The market is represented by the S&P 500® Index. Past performance is not a guarantee of future results.

 


 

Compounding Long-Term Wealth

Hypothetical $10,000 Investment

S&P 500® 1991-2015

The market is represented by the S&P 500® Index. Investments cannot be made directly in an index. Past performance is not a guarantee of future results.

2. Keep Emotions in Check

Charlie Munger

“A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw irrational emotion under control.”

Charlie Munger,
Vice-Chairman, Berkshire Hathaway


 

When Led By Emotions Investors Can Be Their Own Worst Enemy

As we all have experienced, when led by emotions, investors can be their own worst enemy. It’s very, very difficult for us to resist these impulses, especially when the media and chatter at cocktail parties is fueling the frenzy.

 


 

The Benefit of Keeping Emotions in Check

Hypothetical Growth of $10,000 Over 20 Years1

Source: Quantitative Analysis of Investor Behavior by Dalbar, Inc. (March 2016) and Lipper. Dalbar computed the “Driven by Emotions” by using industry cash flow reports from the Investment Company Institute. The “Emotions Held In Check” figures represent the average return for all funds listed in Lipper’s U.S. Diversified Equity fund classification model. All Dalbar returns were computed using the S&P 500® Index. Returns assume reinvestment of dividends and capital gain distributions. The fact that buy and hold has been a successful strategy in the past does not guarantee that it will continue to be successful in the future. Past performance is not a guarantee of future results.

3. Disregard Short-Term Forecasts

“The function of economic forecasting is to make astrology look respectable.”

John Kenneth Galbraith,
Economist and Author


 

Market Forecasts are Consistently Wrong.
Following Them Can Hurt Returns.

1 Source: Wall Street Journal Publications. From 1999 through 2005, numbers reflect Dow Jones Industrial Average forecasts. In 2006, the S&P 500® Index was used exclusively. Past performance is not a guarantee of future results.

 

 
4. Make a Habit of Investing Regularly

“Systematic investing will pay off ultimately, provided that it is adhered to conscientiously and courageously under all market conditions.”

Ben Graham,
Father of Value Investing


 

Systematic Investing =
Investing Equal Amounts at Regular Intervals


 

The Benefit of Systematic Investing

Investing consistently regardless of market conditions can build you long-term wealth. Why?


 

Systematic Investing Works

$10,000 Investment and $10,000 Added Quarterly

S&P 500® 2001-2015

“Systematic Investment” Total Return is represented by quarterly systematic investments of $10,000 in the S&P Index from December 1999 through December 2014. Systematic investing does not assure a profit nor protect against losses in declining markets. Systematic investing involves continuous investment regardless of fluctuating prices. You should consider your financial ability to continue purchases through periods of high or low price levels. Investments cannot be made directly in an index. Past performance is not a guarantee of future results.

5. Don’t Try to Time the Market

“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”

Peter Lynch,
Legendary Investor and Author


 

Timing the Market is a Loser’s Game

 


 

The Benefit of Staying the Course

$10,000 Investment in the Market
Over the Past 20 Years 1

1 The market is represented by S&P 500® Index. Investments cannot be made directly in an index. Past performance is not a guarantee of future results.

6. Markets Fluctuate. Stay the Course.

“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”

Ben Graham,
Father of Value Investing


 

Successful Journeys Require
Patience and Discipline

Market High and Low for Each Year

S&P 500® 1981-2015 1

Past performance is not a guarantee of future results.

 


 

The Benefit of Staying the Course

Hypothetical $10,000 Investment

S&P 500® 1981-2015

Remain patient and unemotional
to benefit from the power of equities.

Past performance is not a guarantee of future results.

7. A Market Correction is an Opportunity

Warren Buffet

“A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.”

Warren Buffett,
Chairman, Berkshire Hathaway


 

Take Advantage of Low Prices

Fear and greed can cause investors to rush in and out of the market at inopportune times.

 


 

Three Reactions to a Market Downturn

Hypothetical $10,000 Investment

S&P 500® 2007-2015

Investors who kept their emotions in check have
built more than twice as much wealth.

Past performance is not a guarantee of future results.