As seen in
Denver Five Star award winner

Hitting a Home Run with Diversification!

Baseball is a lot like life. It's a day-to-day existence, full of ups and downs.

– Ernie Harwell, the voice of the Detroit Tigers

 

There are plenty of baseball sayings you can relate to investing — keep your eye on the ball, step up to the plate, don’t let the fear of striking out keep you from playing the game — but there’s a great lesson baseball can teach us about diversification.

 

Think of diversification like playing defense in baseball. You may look at where a batter last hit the ball — let’s say center field — and you could place all of your players there, ensuring you catch a ball if it goes to that area of the field.  However, we know what happened during the last at bat won’t necessarily happen during the next at bat. Even if the last three batters all hit to center field, you can’t be sure the next hit will go there. What happens if the next batter hits it to the right field corner and all of your players are standing in center field?

 

So what do you do? Well, you spread out your players to cover as much of the field as possible, ensuring that you’re “covering your bases”…literally…as shown in the graphic below. The other team is bound to get some hits and maybe even score some runs, but by the end of game, chances are good you have also gotten some hits and scored some runs...maybe you even win the game. And if you didn’t win today, you might win tomorrow.  One thing is for certain: you’ll never win by putting all of your players in center field.

 

As financial professionals and fiduciaries, we work to help you cover your bases by investing in many companies, countries and types of securities. By doing this we have a better chance of long-term success.  How have you been feeling about the current markets and your investment allocation?  Was your portfolio built to not only grow but to mitigate volatility?  Have your financial goals changed?  Perhaps this would be an ideal time for a fresh perspective.

 

 

Click to access BrokerCheck

Securities and advisory services offered through LPL Financial.  Member FINRA/SIPC, and a Registered Investment Advisor.  Pugh-Bellmar Financial and LPL Financial are not affiliated. For a ist of states in which I am registered to do business, please visit http://www.pb.financial. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversificatoin does not protect against market risk.

*Winners appearing on this page do not pay a fee to be considered or to win the Five Star Award. Professionals with a digital profile have paid a promotional fee.
The Five Star Wealth Manager award, administered by Crescendo Business Services, LLC (dba Five Star Professional), is based on 10 objective criteria. Eligibility criteria – required: 1. Credentialed as a registered investment adviser or a registered investment adviser representative; 2. Actively licensed as a registered investment adviser or as a principal of a registered investment adviser firm for a minimum of 5 years; 3. Favorable regulatory and complaint history review (As defined by Five Star Professional, the wealth manager has not; A. Been subject to a regulatory action that resulted in a license being suspended or revoked, or payment of a fine; B. Had more than a total of three settled or pending complaints filed against them and/or a total of five settled, pending, dismissed or denied complaints with any regulatory authority or Five Star Professional’s consumer complaint process. Unfavorable feedback may have been discovered through a check of complaints registered with a regulatory authority or complaints registered through Five Star Professional’s consumer complaint process; feedback may not be representative of any one client’s experience; C. Individually contributed to a financial settlement of a customer complaint; D. Filed for personal bankruptcy within the past 11 years; E. Been terminated from a financial services firm within the past 11 years; F. Been convicted of a felony); 4. Fulfilled their firm review based on internal standards; 5. Accepting new clients. Evaluation criteria – considered: 6. One-year client retention rate; 7. Five-year client retention rate; 8. Non-institutional discretionary and/or non-discretionary client assets administered; 9. Number of client households served; 10. Education and professional designations. Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. Award does not evaluate quality of services provided to clients. Once awarded, wealth managers may purchase additional profile ad space or promotional products. The Five Star award is not indicative of the wealth manager’s future performance. Wealth managers may or may not use discretion in their practice and therefore may not manage their client’s assets. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or this publication. Working with a Five Star Wealth Manager or any wealth manager is no guarantee as to future investment success, nor is there any guarantee that the selected wealth managers will be awarded this accomplishment by Five Star Professional in the future. For more information on the Five Star award and the research/selection methodology, go to fivestarprofessional.com. 2,172 Denver-area wealth managers were considered for the award; 213 (10% of candidates) were named 2020 Five Star Wealth Managers. 2019: 2,146 considered, 262 winners; 2018: 2,255 considered, 267 winners; 2017: 1,716 considered, 287 winners; 2016: 1,552 considered, 515 winners; 2015: 3,008 considered, 517 winners; 2014: 4,385 considered, 528 winners; 2013: 2,083 considered, 607 winners; 2012: 1,965 considered, 611 winners.