Trust Company of the South’s investment approach is built on fundamental concepts from the best ideas developed over the last fifty years in the field of academic finance.
Are you concerned with growing wealth or preserving family assets through multiple generations? Or do you have specific needs such as handling the proceeds from the sale of a business or appropriately reinvesting a company retirement plan rollover? Whatever your objectives, we work with you to craft a specifically focused investment plan, putting the odds of a successful investment experience in your favor.
The following cornerstones guide our investment philosophy:
- Markets Work
Free markets work because the price system is a powerful mechanism for communicating information. In fiercely competitive markets we believe prices are fair and reflect all information. Some managers are able to beat the market, but no more than you would expect by chance. Systematically indentifying in advance managers who will outperform the market seems easy, but history proves true skill is hard to distinguish from pure luck.
- Risk and Return are Related
There is no free lunch. Investors who desire a return in excess of inflation must be willing to accept risk. Balancing the appropriate risk / desired return with one’s wealth, income needs and desired legacy is equal parts art and science.
- Diversification, Diversification, Diversification
Markets only compensate investors for risks that cannot be eliminated. You don’t get a “loyalty premium” for holding company stock or an heirloom stock inherited from a grandparent. A well-diversified mix of asset classes and investment styles will, over the longer term, reduce risks and maximize returns. We do not believe in “market timing” or in frequent switching between investments in an attempt to outperform the market.