Our Investment Philosophy

At Silicon Hills Wealth, our investment approach is grounded in the notion that markets work. Instead of predicting markets and where they will go, we believe that investors are better served by focusing on known dimensions of risk and return within markets. Effectively tilting an investor’s portfolio into these dimensions will produce a more efficient outcome for our clients.

guide points

Embrace the power of markets.

The market is an effective information-processing machine. Each day, the world equity markets process billions of dollars in trades between buyers and sellers—and the real-time information they bring helps set prices.

Understand the drivers of returns.

There is a wealth of academic research into what drives returns. Investors should tilt their portfolios into known dimensions of the markets that have historically provided return premiums.

Look beyond stocks and bonds.

Markets have evolved and investors should look beyond traditional stocks & bonds when constructing portfolios. The investable universe encompasses many assets beyond just publicly traded stocks and bonds:

  • Commodities
  • Public & Private Real Estate
  • Currencies
  • Futures Markets
  • Private Equity & Debt
  • Emerging Asset Classes

Domestic equities (S&P 500) and bonds are a fraction of the investable universe.
Just 7.5% in fact.

Let markets work for you.

The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.

Practice smart diversification.

Holding securities across many market segments can help manage overall risk. But diversifying within your home market may not be enough. Global diversification can broaden your investment universe.

Avoid market timing.

Holding securities across many market segments can help manage overall risk. But diversifying within your home market may not be enough. Global diversification can broaden your investment universe.

Look beyond the headlines.

“The stock market is a giant distraction from the business of investing.”
– Jack Bogle, Founder of Vanguard