Our investment approach is simple: Do what’s right. Always.

Doing what’s right is measured in two ways: by an ethical standard, and by technical expertise.

In other words… Is the focus on you, rather than the advisor? And is the approach likely to work better than the alternatives? Both are equally important. We believe that our commitment to the highest standards of each, as fiduciaries, gives you the best chance of success.

Client Focused
Your goals and your success are all that matter. It’s our philosophy and our business model. As fiduciaries, we are bound to the highest ethical standards of the law to do only what’s in your best interest. Our complete transparency in our recommendations and compensation make that easily apparent.
We want you to know what we know. In investing, understanding leads to confidence. And confidence will help you sleep at night. We’ll share with you as much information as you need, so you can be confident in the decisions we make together.
The marketing machine of Wall Street, the next hot stock, the talking heads of television. None of them add value, just confusion and cost. Instead, we embrace decades of peer-reviewed, unbiased academic research – what we call the Evidence-Based Investment Approach – to make informed decisions about what’s likely to work best.
Academic research overwhelmingly demonstrates that “active management” doesn’t work. Information is processed and reflected in stock and bond prices too quickly for any timing strategy to consistently justify its cost. The collective wisdom of investors makes any attempt to outsmart the market an often costly and futile endeavor.
They are inextricably related. But not all risks are equal. Academia has identified what risks are likely to help your portfolio grow, and which are likely to hurt you. We model your portfolio to take advantage of what academia has taught us.
“Don’t put all your eggs in one basket” is more than just an expression. Diversification works. Harry Markowitz proved it mathematically in 1952, winning a Nobel Prize for his work. The idea is simple: a properly diversified portfolio is likely to earn the same return for less risk than one that is not diversified.
Lower costs are directly correlated with higher returns. We bear that in mind with every investment decision we make. Costs come in many forms: direct expenses, hidden expenses, taxes, and opportunity costs. Our approach minimizes each one.
Emotional, irrational decisions, born of fear and greed, hurt investors. That’s why discipline is crucial. We create discipline by educating you, and constructing a portfolio for you that’s logical and easy to understand, that’s reflective of your goals, and that’s underpinned by a thorough plan.

 

The Evidence-Based Approach To Investing

This four part video series explains why this approach to investing gives our clients the best chance of success.

THE EVIDENCE-BASED APPROACH TO INVESTING: Part 1 of 4 from Great Oak Capital Partners on Vimeo.

THE EVIDENCE-BASED APPROACH TO INVESTING: Part 2 of 4 from Great Oak Capital Partners on Vimeo.

THE EVIDENCE-BASED APPROACH TO INVESTING: Part 3 of 4 from Great Oak Capital Partners on Vimeo.

THE EVIDENCE-BASED APPROACH TO INVESTING: Part 4 of 4 from Great Oak Capital Partners on Vimeo.

Investment Diversification and Discipline with Evidence-Based Investing

At Great Oak Capital, our investment philosophy is rooted in a straightforward yet profound principle: do what’s right. This mantra guides every aspect of our business, from the strategies we employ to the advice we offer. Our commitment to ethical standards and technical expertise ensures that our clients’ interests always come first, providing a foundation for success that is both robust and reliable.

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Our approach is designed to prioritize your needs above all else. We believe that true fiduciary duty means being transparent, honest, and dedicated to serving our clients’ best interests. This philosophy is not just a part of our business model; it is our business model. We are bound by the highest ethical standards, which require us to act in your best interest at all times. This commitment to transparency extends to our recommendations and compensation, ensuring that you always know where you stand and how your investments are performing.

Evidence-Based Investing

The investment world can often seem overwhelming, with its constant stream of market news, hot stock tips, and opinionated commentators. However, we at Great Oak Capital prefer to cut through this noise by relying on decades of peer-reviewed, unbiased academic research. This evidence-based investing approach allows us to make informed decisions that are grounded in what is most likely to work over the long term, rather than chasing short-term gains or following market trends.

Academic research has consistently shown that active management strategies, which attempt to time the market or pick individual securities, generally do not outperform the market in the long run. The information is processed and reflected in stock and bond prices so quickly that any attempt to outsmart the market often results in increased costs without corresponding benefits. Instead, we leverage the collective wisdom of investors, focusing on strategies that have been proven to work through rigorous academic study.

Investment Diversification

One of the cornerstones of our investment strategy is diversification. The concept of not putting all your eggs in one basket is not just a cliché; it is a fundamental principle of sound investing. Harry Markowitz’s groundbreaking work in 1952, which earned him a Nobel Prize, demonstrated mathematically that a well-diversified portfolio can achieve similar returns with less risk compared to a non-diversified one. By spreading investments across a variety of asset classes and geographic regions, we aim to reduce risk while maintaining the potential for growth.

Investment diversification goes hand-in-hand with another key principle: minimizing costs. Lower costs are directly correlated with higher returns, and we are acutely aware of this relationship in every investment decision we make. Costs can take many forms, including direct expenses, hidden fees, taxes, and opportunity costs. By focusing on minimizing these expenses, we can help improve your overall investment returns.

Investment Discipline

Emotional and irrational decisions, driven by fear or greed, can be detrimental to investors. At Great Oak Capital, we emphasize the importance of investment discipline. We achieve this by educating our clients and constructing portfolios that are logical, easy to understand, and reflective of their individual goals. This disciplined approach is underpinned by a thorough and well-thought-out plan, designed to help you stay the course even during turbulent market conditions.

What we don’t do is just as important as what we do. We avoid market timing, security selection, and price forecasting, as these are all forms of speculation rather than true investing. Nobel Prize-winning research over the past seven decades has demonstrated that speculation is a losing strategy. Instead, our clients are investors who are focused on their long-term goals, guided by a comprehensive plan, and supported by an approach rooted in academic and scientific principles.

Our evidence-based investing approach is designed to provide you with the best chance of achieving your financial goals. By focusing on what works, and avoiding what doesn’t, we help you build a solid foundation for long-term success. This approach is not only more likely to yield positive results but also aligns with our ethical commitment to doing what is right for our clients.

We also understand that not all risks are created equal. Academic research has identified specific risks that are likely to help your portfolio grow and others that are likely to be detrimental. Our investment strategies are designed to take advantage of these insights, allowing us to construct portfolios that are positioned to benefit from the most favorable risk factors while mitigating those that could harm your investments.

Diversification is a key tool in managing these risks. By spreading investments across different asset classes, industries, and geographic regions, we can reduce the impact of any single investment’s poor performance on your overall portfolio. This strategy helps to smooth out returns over time and provides a more stable investment experience.

Cost management is another critical component of our investment strategy. Every dollar saved in investment costs is a dollar that can be reinvested to generate additional returns. We are diligent in our efforts to minimize all forms of costs, whether they be direct expenses such as management fees and transaction costs, or indirect costs such as taxes and opportunity costs. By keeping costs low, we can help you maximize your investment returns.

Discipline is essential in investing, particularly during times of market volatility. Emotional reactions to market fluctuations can lead to poor investment decisions, such as panic selling during a downturn or chasing high-flying stocks during a boom. At Great Oak Capital, we help our clients maintain discipline by providing education and constructing portfolios that are aligned with their long-term goals. This disciplined approach helps to keep you focused on your financial objectives, even when markets are turbulent.

In summary, our investment approach at Great Oak Capital is built on the principles of ethical standards, technical expertise, evidence-based investing, diversification, cost management, and discipline. By adhering to these principles, we aim to provide you with the best possible chance of achieving your financial goals. We are committed to doing what is right for our clients, and we believe that this commitment, combined with our rigorous investment strategies, sets us apart in the financial industry.

Your goals and your success are at the heart of everything we do. Our philosophy and business model are designed to ensure that your interests are always our top priority. As fiduciaries, we are bound by the highest ethical standards to act in your best interest, and our complete transparency in our recommendations and compensation makes this commitment clear.

The world of investing can be complex and confusing, but it doesn’t have to be. By relying on decades of academic research and focusing on proven investment strategies, we can help you navigate the financial markets with confidence. Whether you are just starting out on your investment journey or looking to refine your existing strategy, Great Oak Capital is here to help you achieve your financial goals.

Great Oak Capital’s investment approach is simple yet powerful: do what’s right. Always. By focusing on ethical standards, technical expertise, and evidence-based investing, we provide our clients with a robust foundation for long-term success. Our commitment to diversification, cost management, and investment discipline further enhances this foundation, helping you to achieve your financial goals with confidence and peace of mind.

What We Don’t Do

Market timing, security selection, price forecasting – they are all forms of speculating, not investing. Seven decades of Nobel Prize winning research demonstrate that speculation is a losing strategy. Our clients are investors, focused on their goals, guided by a plan, with an approach rooted in academia and science.