(704) 236-6615 scott@southernwa.com

Investing Philosophy

Several important concepts regarding our investment philosophy that build the foundation upon which we confidently invest our clients’ assets:

  • Intrinsic Value – We believe a stock’s worth is best determined by the underlying business’s long-term economics, not by what others are willing to pay in the short-term.
  • Margin of Risk – We determine an investment’s margin of risk by the combination of the quality of the underlying company and the discount from a conservative appraisal of intrinsic value offered by the price.
  • Long-term Time Horizon – We focus on pursuing the best possible return compounding of capital over a period of many years rather than managing short-term volatility of returns.
  • Rational and Disciplined Execution – The market occasionally misprices securities for behavioral reasons. These arise due to market participants reacting to developments emotionally rather than rationally and to some market participants’ misaligned incentives. By remaining rational and disciplined in managing our portfolio, we can take advantage of the market’s mistakes while guarding against mistakes of our own.
  • Concentrated Portfolio – We seek investment opportunities that combine a company we perceive to be of high quality with a price that is at a material discount to intrinsic value, which arise only infrequently. After constructing a portfolio where being wrong on any single judgment should not result in a material loss of principal for the portfolio as a whole, additional diversification is more likely to increase rather than reduce risk by forcing the inclusion of increasingly inferior investments.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and Asset Allocation does not protect against market risk.

There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required effect some of the strategies. Investment involves risks including possible loss of principal.

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Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Independent Advisors Alliance, a registered investment advisor. Southern Wealth Advisors and Independent Advisors Alliance are separate entities from LPL Financial.

The LPL Financial registered representatives associated with this site may only discuss and/or transact securities business with residents of the following states: North Carolina, South Carolina, Florida, Michigan, California, Arizona, and Virginia.

Southern Wealth Advisors
18716 W Catawba Ave
Cornelius, NC 28031