SCM’s investment approach defines the kind of advisor we are and, most importantly, how we manage your money. The way we design, construct, implement and manage our portfolios is built around this approach. This section with its accompanying pages is a statement of our approach.
Our vision is to make the investment process fruitful and ‘user friendly’, thus adding value to your pursuit of hopes and dreams. Our mission is to develop customized strategies, clearly communicate their elements and efficiently execute these strategies with traditional stock and bond portfolios.
Our approach can be divided into its components, described in the summaries below. For a closer look, click on the link at the end of each topic.
Features and Benefits
The features and benefits which distinguish Simpson Capital are:
- Fee Only Advice
- Highest Professional Standard
- Personal Objectives Based Process
- Comprehensive Research
- Ongoing Professional Financial Advice
- Third Party Held Assets
To found out how these qualities can benefit you, visit our Features and Benefits page.
Investment Basics
An investment is the acquisition of an asset such as a stock or bond where the reasons for parting with your money are more compelling than the alternatives. Your portfolio is an accumulation of assets owned and designed to transfer your purchasing power to the future. The sum of income plus capital gains earned by your investments while keeping risk confined to a tolerable range is your reward.
- Introduction- describes portfolio construction, types of risk, efficient markets and provides definitions; visit Basics Introduction.
- Security Markets– describes stock exchanges, market makers, mechanics of a trade and regulation; visit Security Markets.
- Information Sources– lists essential data points for investment decisions and shows where to obtain them; visit Information Sources.
- Risk and Portfolio Theory– presents the time value of money and describes risk and return and how to measure them; visit Risk and Portfolio Theory.
- Investment Companies– analyzes mutual funds and exchange traded funds; visit Investment Companies.
- Stock Valuation– presents two valuation models and discusses efficient markets; visit Stock Valuation
- Macroeconomic Environment– analyzes economy, Federal Reserve and industrial sectors, visit Macroeconomic Environment.
- Statement Analysis– describes ration analysis of financial statements and how to use them to value stocks’ visit Statement Analysis.
- Bond Market– describes the features, types, mechanics of buying and now to value bonds; visit Bond Market.
- Foreign Securities– describes the considerations and advantages of foreign investments; visit Foreign Securities.
For an overview of Investment Basics, click on Investment Basics or to learn more about these topics, click on the link at the end of their descriptions.
SCM Investment Philosophy
An investment philosophy is a coherent way of thinking about markets, how they work and the types of mistakes which consistently underlie investor behavior. Visit our Investment Philosophy page to learn how SCM’s philosophy behind making investment decisions is right for you.
Modern Portfolio Theory
Simpson Capital’s portfolio management style is based on the concept of Modern Portfolio Theory (MPT). MPT says you can construct portfolios to maximize expected return based on a your desired level of market risk and this controlled risk is an integral part a your reward. Visit our MPT page to learn how SCM integrates MPT in managing portfolios and how we can work together to produce a long and fruitful relationship.
Personal Financial Planning Guide
SCM can be valuable partner in managing your finances. Visit the SCM Financial Planning Guide based on courses taught by its founder/CEO at UCLA to see how SCM can set you on a reasoned path to achieve your financial goals.
