Our Strategy
Our Approach
CFD Investment Advisory builds diversified, long-term portfolios using a blend of low-cost index funds, mutual funds, bonds, and carefully selected individual ETFs and equities. We manage risk primarily through asset allocation — the mix of stocks, bonds, and cash appropriate to each client's goals, time horizon, and risk tolerance — rather than through frequent trading or attempts to time the market.
This philosophy applies across the accounts we manage, and it scales from a $50,000 account to a $20 million portfolio.
This philosophy applies across the accounts we manage, and it scales from a $50,000 account to a $20 million portfolio.
Core Principles
I
Long-term focus
We invest for years, not weeks. Positions are chosen to be held through market cycles, and our process is built around patience and discipline rather than reacting to short-term price swings or headlines.
II
Risk managed through allocation
The mix between stocks, bonds, and cash is the primary tool we use to manage risk and match a portfolio to what a client actually needs it to do. That mix is set deliberately for each client and adjusted only when their goals, time horizon, or risk tolerance change — not in response to market noise.
III
A blended toolkit
We draw from a full toolkit — low-cost, broadly diversified index funds and mutual funds, individual ETFs, and individual equities — and blend them in whatever proportions fit each client's goals, time horizon, and risk tolerance, giving us the cost efficiency of indexing alongside the flexibility to hold specific funds and businesses we've researched and believe in.
IV
Fundamentals drive stock selection
When we choose an individual equity, we start with the company itself — valuation, financial strength, competitive position, and quality of earnings — and weigh the broader economic backdrop, not to predict short-term price moves, but to understand whether a business is positioned to compound value over the long run.
V
Discipline over reaction
We rebalance portfolios back to their target allocation on a regular basis rather than letting winners and losers drift a portfolio away from its intended risk level. Decisions are grounded in research and a client's plan, not emotion or short-term market swings.
How We Select Investments
The mix between low-cost index funds, mutual funds, individual ETFs, bonds, and individual equities isn't fixed — it depends on each client's goals, time horizon, and risk tolerance. A client prioritizing broad, low-cost market exposure may lean more heavily on index funds and mutual funds; another with room for more research-driven positioning may hold a larger share in individually selected ETFs and equities. In every case, our research determines what earns a place in the portfolio.
For individual stock selection specifically, our process looks at:
Valuation
Price-to-earnings ratio and other measures of whether a company's price is reasonable relative to its earnings and growth
Financial Health
Balance sheet strength, cash flow, and earnings quality.
Competitive Position
How durable a company's business advantage is likely to be over time.
Economic & Market Context
Current economic data and market forecasts, used to
understand the environment a company operates in — not to time when we buy or sell it.
The goal of this research is to identify businesses worth owning for years, not to trade around short-term price movement.
For Our Clients
Every portfolio we manage — whether for an individual, a trust, or a nonprofit organization — is built around the same disciplined process:
Prudence is documented
Decisions are grounded in each client's investment plan — for nonprofit clients, a board-approved Investment Policy Statement (IPS), consistent with UPMIFA — so the reasoning behind the portfolio can be reviewed at any time.
Fees are transparent
A clear, published fee schedule means there are no hidden costs to explain, whether in an annual review or a board meeting.
Distributions are sustainable
For clients drawing income, and for nonprofits managing a spending policy — commonly a percentage of a trailing average balance — allocations are built with that need in mind.
Reporting is simple
Our process produces reporting that's easy to review, whether that's for your own records or your board's minutes.
What This Means for You
We won't promise a particular return or claim we can predict where markets are headed — we don't believe in either, and we don't think you should be asked to rely on them. What you will get is a portfolio built around your actual goals and risk tolerance, invested with a long-term mindset, researched with discipline, priced transparently, and reported on clearly.
Our Role
To build that portfolio, manage it with the same discipline over time, and keep it aligned with your goals as your circumstances evolve.