Buy & Hold Investing
WHAT IS BUY AND HOLD INVESTING?
Buy and hold investing is actually kind of simple. It is simply the art of selecting the kind of investments that suit the individual and putting them together in a way that seeks to optimize rate of return and lower risk – and then holding them and letting them perform. There are differences in how each investment advisor selects assets and implements their buy and hold strategy.
HOW IS YOUR APPROACH TO BUY AND HOLD INVESTING DIFFERENT FROM OTHERS?
First and foremost, Reppond Investments, Inc. is an independent Registered Investment Advisor. They are not beholden to a Wall Street brokerage firm who dictates what investment choices are made. Investment decisions are made solely by Ben Reppond based upon lengthy research. Secondly, over macro periods of time, the investment allocation is adjusted to seek higher returns when market risk is lower and seek to lower risk when market conditions are more risky. Thirdly, investment choices avoid specific allocations where there is a concentration in sectors and funds that can be more volatile and are less predictable.
WHAT IS THE GOAL OF BUY AND HOLD INVESTING?
Our goal is simple: Outperform the S&P 500 Index over time by using a proprietary strategic buy and hold allocation – and changing it as market conditions dictate. There is a keen eye to managing downside risk, especially when risk begins to enter the market. The second part of the goal is to take advantage of lower prices when they present themselves by reallocating holdings.
HOW DO YOU LOOK AT RISK?
Risk can be looked at two different ways: volatility and drawdown. Volatility is the degree of fluctuation of an investment. Drawdown is the degree of drop of an investment from its highest point to its lowest point.
WHAT IS YOUR FEE?
The maximum fee is 1% per year, paid quarterly. The fee is less for larger accounts. There are two things about fees that are both significant: One, the fee needs to be modest and reasonable. Two, what are you really getting for the fee you are paying? If the S&P 500 Index is a benchmark, NET returns after the fee should outperform the benchmark with hopefully less risk. If not, why do you need an investment advisor and why do you need to pay a fee? You don’t.
HOW OFTEN ARE RESULTS REPORTED TO ME – AND CAN I UNDERSTAND THEM?
Reppond Investments, Inc. uses an online reporting tool so clients can easily access their investment information any time – and so they can understand it. Ben Reppond personally communicates end-of-month data to each client along with his view of market conditions. The goal is frequent and understandable communication.
IN A NUTSHELL, WHY SHOULD I DO BUY AND HOLD INVESTING WITH REPPOND INVESTMENTS, INC?
Simple: High value, low fees and frequent communication of real-time results. Our goal is for the client to get more than what they are paying for.