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Investment Management

At Bernhardt Wealth Management we know from experience that financial success is most likely to be achieved through an unwavering commitment to a set of investment principles: efficient markets, modern portfolio theory, diversification, intelligent asset allocation and low cost investments. We design each client’s portfolio using these principles to lay the foundation for their future financial security.

It has been our experience that investment success is more likely to be achieved through an unwavering commitment to a set of clearly defined investment principles. These principles define Bernhardt Wealth Management’s investment philosophy, and serve as a platform for every portfolio we design for our clients.

 

EFFICIENT MARKETS

Security prices are determined according to all freely available information and by fierce competition among market professionals. As such, we believe it is virtually impossible for any single investor to consistently earn more profits than other investors by choosing securities that are undervalued. In other words, market forces create an environment where picking individual stocks does not guarantee superior performance.

 

MODERN PORTFOLIO THEORY

Modern Portfolio Theory (MPT) was developed at the University of Chicago by Harry Markowitz and Merton Miller and later expanded on by Stanford professor William Sharpe. Each of these professors later won the Nobel Prize in Economics for their contribution to investment methodology. Unlike traditional asset management, which focuses on predicting individual stock price movements, MPT looks at the portfolio of assets based on the combination of its risk and return components. According to the principles of MPT, there is an optimum combination of investments that will bring the highest rate of return for every level of risk.

 

DIVERSIFICATION

Investors can reduce their potential for loss by investing in a basket of different securities. In less technical terms, diversification means the same thing as the adage, “Don’t put all your eggs in one basket.” It is important to note that a diversified portfolio is not necessarily a properly allocated portfolio.

 

ASSET ALLOCATION

Academic research has provided evidence that an investor’s asset allocation decision — the choice of asset classes and the portfolio percentage allocated to each — is the single most important element in a portfolio strategy. It accounts for 94 percent of a portfolio’s performance compared with 2 percent for market timing decisions and 4 percent for security selection. Asset allocation involves diversifying among several asset groups to improve total return while reducing risk.

 

Strategic Investment Management Process

​Bernhardt Wealth Management has developed the Strategic Investment Management Process to ensure that our clients’ portfolios are customized to their unique needs and goals, and periodically updated to reflect any changes to those needs and goals. This process enables us to achieve three important goals:

To create a road map for each portfolio, based on the client’s true financial goals

To institute a regular review process that keeps the client’s portfolio on track even when life circumstances or the markets have changed

To communicate progress to each client in a clear, useful way

At Bernhardt Wealth Management, we base all our portfolio recommendations on the four principles of Our Investment Philosophy. In keeping with these principles, we implement investing strategies that emphasize asset class allocation and minimum trading. The result is a portfolio that harnesses the power of the normal movements of the market while minimizing investment costs and taxes.

We believe that financial security and peace of mind are the result of developing an Investment Plan, and then following it consistently. Using our dynamic and disciplined Strategic Investment Management Process, we work closely with each of our clients through four distinct phases:

1

INVESTMENT PLAN DESIGN

2

INVESTMENT IMPLEMENTATION

3

QUARTERLY REPORTING

4

PORTFOLIO OPTIMIZATION

 

1. INVESTMENT PLAN DESIGN

We assess (or reassess) where you are now and where you want to go, and we outline any actions that may be required to maximize your probability of achieving those goals. This is called a Gap Analysis. Based on the Gap Analysis, we develop or refine the personal Investment Plan. This Plan provides a road map for the development of your portfolio, clearly defining goals and the investment strategies we will use to help achieve them.

2. INVESTMENT IMPLEMENTATION

Once you approve the Investment Plan, we make all the necessary changes to the portfolio to implement the plan. After the trades are completed, you will receive trade confirmations showing the number of shares, the date the trades were executed, the price per share and all other pertinent information regarding the purchases and sales.

3. QUARTERLY REPORTING

Shortly after the end of each calendar quarter, we will provide you with an easy-to-understand, detailed review of your portfolio. This report will allow you to easily determine how the portfolio as a whole and each asset class has performed. The report will also provide a summary of activity that has taken place for the quarter, the last 12 months and since the inception of the account.

4. PORTFOLIO OPTIMIZATION

The one thing we can always rely on is change. Because proper asset allocation is so important, we conduct a review each quarter of every asset class in your portfolio to determine if it is still appropriate to your overall plan. If market conditions have caused the actual allocation to shift from the target allocation by an amount greater than our predetermined levels, or if life changes have shifted your priorities and tolerance for risk, we will rebalance the portfolio. This review automatically happens every quarter, but it can also be conducted whenever circumstances warrant a reassessment.

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Phone: (703) 356-4380
Toll Free: (888) 356-4380
Fax: (703) 356-4383

Email: gordon@BernhardtWealth.com

7601 Lewinsville Road, Suite 210, McLean, VA 22102

       

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Bernhardt Wealth Management, Inc. (BWM) is a registered investment advisor with the Securities & Exchange Commission. BWM may only transact business or render personalized investment advice in those states and international jurisdictions where we are registered/filed notice or otherwise excluded or exempted from registration requirements. The purpose of this web site is only for information distribution regarding BWM products and services as well as general investor education. All information is provided for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.

 

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