Investment Philosophy

F. Dennis De Stefano CPA CFP is the Chief Investment Officer and President of Maui Hawaii based De Stefano Wealth Management. Our Fee-Only Wealth Management firm specializes in Professional Investment Management. 

We Passionately Believe That The Active Management Of Investment Risk
Is The Key To Long-Term Investment Success.

It is important to recognize that investment management cannot control investment returns because no one controls security prices. Investment management can only control risk.

Our approach to portfolio management takes its lead from Benjamin Graham, the father of value investing, who argued that "the main benefit of having a professional advisor is to protect the investor from costly mistakes, not best the averages."

Thus, the key to long-term investment success is proper attention to, and management of, investment risk. As long as we live in a world of inflation and taxes, combined with market risk, interest rate risk, currency risk and credit risk, there are no risk-free investments. Since we cannot eliminate investment risk, we must effectively manage investment risk. And the management of investment risk is the beacon of our management style.

How We Manage Investment Risk

  • By clearly defining your individual risk-tolerance level - Based on your risk-taking ability (monetarily and psychologically), we will establish both a maximum annual loss limit and a realistic expectation of your portfolio’s long-term rate of return. 

  • The combination of Strategic and Tactical Asset Allocation - The historical precedent of strategic asset allocation and the market insight of tactical asset allocation will allow us to both maintain a broadly diversified portfolio and the flexibility to adjust the allocations in light of changing market conditions. 

  • Broad Diversification 

    • Stocks, Bonds and Cash Equivalents
    • Domestic and International Securities
    • Small, Mid, and Large-Cap Equities
    • Government, Agency and Corporate Bonds
    • Growth and Value Management Styles
    • Alternative Investments Including Commodities and Real Estate
       
  • Carefully Monitor the individual management styles (for style-drift) and risk-adjusted investment performance of your team of Money Managers. 

  • Constant Supervision of your investments, with periodic adjustment (not merely re-balancing) of your portfolio’s Asset Allocation in anticipation of the dynamic changes in the global investment environment and financial markets.