Blackstone Wealth Management provides clients with the highest level of professional investment advice. Our sound investment philosophy is based on proven techniques that help clients fulfill their long-term goals. This is accomplished by using a wide range of investments, while utilising sophisticated computer programs designed to help monitor and manage returns and volatility.
The concept of portfolio volatility and its effects on returns was first explored by Professor Harry Markowitz. This conceptual framework was later given the title: "Modern Portfolio Theory." Dr. Markowitz and his colleague William Sharpe were awarded the Nobel Prize in 1990 for their work on the theory and practice of portfolio diversification. While investors before then knew intuitively that it was smart to diversify (i.e. Don't put all your eggs in one basket), Markowitz was among the first to quantify risk and demonstrate quantitatively why and how portfolio diversification works to reduce risk for investors.
Blackstone Wealth Management uses Modern Portfolio Theory to make sound decisions. Many financial advisers merely strive to maximise performance without considering the portfolio volatility and risk. Often, what these firms do is put their clients in inappropriate and unduly risky investments.
When it comes to establishing a plan for investing money, every decision that is made should be driven by the objective of maximising the chances of a successful outcome. It is this concept that separates investing from speculation; the latter being the pursuit of high pay-offs with a low likelihood of occurring and where the true level of risk is either not known or ignored.
From an investment perspective that means looking at the academic theory and research evidence, and choosing the course of action that delivers this objective. From a client’s perspective, it is about controlling emotions that encourage them to respond to market extremes in a wealth-destroying manner. Blackstone's investment strategies are scientifically structured, grounded in Modern Portfolio Theory, based on the most current academic thinking and research and grounded by common sense.