OUR PHILOSOPHY

Go Beyond the Spreadsheet

We believe in the importance of fundamentals:

     // Know what you own
     // Know why you own it

We design investment portfolios that reflect your unique objectives and constraints, relying on our comprehensive wealth management process to provide the critical inputs that allow our portfolio management team to work most effectively.

At Basepoint Wealth, we do not hide behind industry jargon, and misguided "industry norms" to create and manage your portfolios - we put in the work to understand you, and your goals, and manage your money accordingly.

Street pole with investment types

Investment Philosophy

Our investment philosophy is built on a set of principles designed to guide us through every political, economic, and market climate. Our 7 Principles are convictions that we believe to be objectively true and not influenced by market fads. They are not mathematical in nature because they do not depend on interest rates, economic growth rates, P/E ratios or other market metrics often cited in news media. 

1 // Contrast Investment Versus Speculation

Our first principle is carefully contrasting investment versus speculation and being very deliberate in avoiding the latter. In our estimation, avoiding mistakes is much more important to your success than outguessing the competition regarding short-term security price fluctuations.

2 // Invest with a margin of safety

Our second principle is that “Price Matters”. In other words, we always attempt to purchase securities with a margin of safety, and we utilize fund managers who do the same.

3 // Define risk as the permanent loss of capital

Risk Mitigation is developing a system that attempts to reduce either the frequency or the impact of a risk event. Risk Avoidance is attempting to eliminate a risk. Our processes are designed to mitigate the impact of Risk and avoid the risk of Permanent Loss of Capital.

4 // Carefully manage liquidity

It is imperative that we maintain adequate liquidity to provide for our needs during good times and bad. There is a certain amount of freedom granted by having set aside ready cash so that during times of emergency we are not left to count on the kindness of friends or strangers.

5 // Think long-term

When it comes to important financial decisions, it always feels like we should do something, but as Charlie Munger said: “The big money is not in the buying and selling … but in the waiting.” By designing repeatable processes, controlling our emotions, and putting the wind of time to the back of our sails, we maximize our potential to reach and surpass our goals.

6 // Appropriate use of diversification

“All things are poison, and nothing is without poison, the dosage alone makes it so a thing is not a poison." The purpose of Principle 6 is laying the groundwork for determining the correct prescription to help you realize your goals, because as surely as too much oxygen or water can be harmful, diversification is a medicine most wisely used in moderation.

7 // Carefully consider costs

The maze of fees and expenses that you pay to manage your financial situation is complex and opaque, and sometimes even unknown. Our mission is to simplify things and make sure that whatever cost you incur provides some sort of return either financially, or mentally, while still making sure that you are getting all the services that you require to make good decisions and have a sound financial situation.

W. Allen Wallace, headshot

W. Allen Wallace

CFA, CPA/PFS, CFP®, MBA

Chief Investment Officer

Founding Partner

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