There is a strong tendency within the financial industry to run with the herd. Losing client money during market downturns is considered to be acceptable as long as everyone else is losing their clients' money as well. Exercising too much caution while the market is rising, on the other hand, can end careers -- even if that caution is entirely justified. The pressure to conform is overwhelming.
Following the herd may be a good way to protect a career in the financial industry, but it is unlikely to generate good long-term returns for clients.
At Pacific Capital Associates, we are completely independent. We make investment decisions based not on what the crowd is doing, but on our own extensive research into which investment strategies present the best risk-adjusted opportunities.
We do not think it's acceptable to take on undue risk just because everyone else is doing so. We also do not use proprietary investment products, charge exorbitant fees, or chase short-term performance.
Instead, we follow the value-seeking approach best articulated by Warren Buffett: "to be fearful when others are greedy and to be greedy only when others are fearful." Our overwhelming emphasis is on long-term total returns.
Pacific Capital Associates has been in the investment management business for over 20 years and manages more than $150 million for individuals, companies, and trusts.
Please visit our frequently asked questions page or contact us if you are interested in discussing an investment account.
