Pih Investments believes that significant wealth is created through participation in global and domestic markets over the long term, and supports the Nobel-winning research found in Modern Portfolio Theory. Pih Investments creates portfolios consistent with client risk tolerances that utilize the power and expected growth of capital markets in order to deliver excellent returns in a tax-efficient manner. In public markets, we believe that in accordance with the semi-strong form of the efficient market hypothesis, these markets are efficient, and as such, utilize low risk and low cost investment strategies. When opportunities arise, and in line with a client's appetite for risk, higher risk actively managed private investments can be effective for a client despite higher expenses, risk, and lack of liquidity.
The vast majority of evidence and statistics point toward investors not being able to consistently and correctly time the market in the short term at any given time. Attempts to do so can be very inefficient tax wise, and just one ill-timed decision can cancel out any returns that could have been made through disciplined equity investing in the long term.
Risk is the one of the primary factors to consider when building a portfolio. The majority of Pih Investments' clients are intentional about risk in their portfolios as a preference, not a necessity. Despite these preferences, we are straightforward in ensuring that the portfolio is diversified across asset classes. Taxes are an inescapable part of the lives of affluent investors. However, Pih Investments exercises great care in the proper placement of investment vehicles within different types of accounts. We constantly monitor accounts and look for ways to harvest losses as a way to offset gains.