Great Question. Check out our answer here: Is OMNIWEALTH right for me? 

Updated financial statements from the company are provided on a quarterly basis and we review them when they are released. However, in the meantime we watch news feeds and set price alerts on all the investments we own so we are continually monitoring our investments.

We would love to fill our portfolio with high-quality, high-growth companies at attractive prices and just kick our feet up as they continue to grow in value over time. Occasionally we find these opportunities but usually only during periods of extreme pessimism (panic selling) in the markets. However, there are always opportunities to buy assets at a discount, perhaps with fewer organic growth opportunities.

Low-growth investments need to be pruned or sold completely once they reach full valuation, which will increase the amount of turnover in the portfolio. Therefore, turnover can vary depending on the types of investments we own and market movements. An expectation of around 30% annual turnover is reasonable.

We are currently over 70% US weighted but are actively looking to add more international holdings. We could see our portfolio moving closer to 50/50 in the future.

Markets involve people and people are emotional creatures who have a tendency to allow their emotions to affect their judgement. Emotional decision making leads to fluctuations between undue optimism to undue pessimism. This tide of emotion, also referred to market commentators as “animal spirits”, creates momentum (a.k.a. fads or volatility) in certain companies or in entire asset classes (stocks, bonds, real estate, commodities) which leads to prices swinging significantly above or below the fundamental value of the underlying business.

Over time, prices come back in line with fundamentals, creating opportunities for discerning investors to take advantage of the temporary mispricing. The more extreme the mispricing, the greater the opportunity. Therefore, as patient, long-term investors, we love market volatility because it provides us the opportunity to purchase investments at a discount and sell them at a premium.

What is the stock market, besides a market of stocks? Each share of stock represents partial ownership in a business that has its own unique characteristics, goods and services, processes, management, culture, etc. Market participants – investors, speculators, and traders – have their own particular motives, rationale, and timeframes for buying or selling. We believe that consistently and accurately predicting the price movements determined by the combined behavior of so many disparate actors is nearly impossible and, therefore, we do not try. (See our related discussion of probabilities.)

Instead, our approach is to (1) find businesses with desirable qualities, (2) make a determination of their value and (3) purchase them when they can be bought at a discount or (4) sell them when an overly optimistic premium is placed on them.

The future is not certain. Models help us visualize possible outcomes and the effects they might have on a business. We want to own businesses that have the capacity to endure when times are tough.

Stress-testing through models enables us to gauge a company’s resilience. Additionally, modeling growth assumptions helps us remain rational about the opportunities a business has to increase value over time and about the ability of the CEO and management team to execute.

We are a FIDUCIARY, FEE-ONLY firm with the goal of growing our clients wealth and minimizing risk. Our risk-averse nature extends beyond investing to include the safety and security of our client’s assets. Client assets are held in separately managed accounts (SMAs) at highly reputable custodians like Charles Schwab, Interactive Brokers and TD Ameritrade. Clients provide OMNIWEALTH with limited authorization to direct trading in their account, but only they can access their assets.

Joshua Knauss is the Chief Investment Officer and Portfolio Manager and is solely responsible for making all investment decisions at OMNIWEALTH. He leverages his 20+ years of investment experience as well as input from colleagues, including a cohort of global analysts and investors of which he is a member.

It’s as easy as 1, 2, 3…

1. Get to know us by reading through our website, especially our FAQ section.
2. Be sure to take time to review our investment philosophy and process.
3. If that resonates with you, the next step is to schedule an initial consultation with Josh to discuss your needs and ensure that we are a good fit for you.