What We Do
We combine Nobel Prize winning research*, cutting-edge technology, and a philosophy based on the idea of balance to help our clients achieve a new level of financial control and overall well-being.
Optimize
Optimize
OUR BELIEF
Buttonwood Wealth was founded with an idea to change the way people think about investing. For decades the financial industry has swayed investor behavior towards incredibly long-term decision making, often at the cost of fulfillment in the short to medium term. We believe there must be a balance between enjoying today and preparing for tomorrow and that the actionable information we provide to our clients must demonstrate this idea.
HOW WE DO IT
The journey with us starts with a blank canvas and a simple discussion. We sit down face-to-face to learn your story and share ours. The experience we’ve created allows you to focus on the big picture to help define your ambitions, goals and economic situation.
EXPECTATIONS
- Unlimited 1:1 guidance
- Simplified financial overview
- Clear action items to optimize your finances
Invest
Invest
OUR BELIEF
“The stock market is a device for transferring money from the impatient to the patient.”
- Warren Buffet
Our investment approach is based on a belief in markets. Rather than attempting to predict the future or outguess others, we draw information about expected returns from the market itself—leveraging the collective knowledge of its millions of buyers and sellers as they set security prices. Trusting markets to do what they do best—drive information into prices—frees us to spend time where we believe we have an advantage, namely in how we interpret the research, how we design and manage portfolios, and how we service our clients. We take a less subjective, more systematic approach to investing—an approach we can implement consistently, and investors can understand and stick with, even in challenging market environments.
HOW WE DO IT
Academic research has identified several characteristics that help explain the expected returns of your investment portfolio. Investing in companies that embody these characteristics can help increase your expected return.*
These characteristics are commonly referred to as factors, or dimensions of return.
Equity Factors
(Stocks)
Traditionally, stocks are more risky investments than bonds. The overall percentage of stocks vs bonds in your portfolio impacts the return.
Bonds
vs.
Stocks
Small companies usually have more unpredictable cash-flows than larger companies which tends to make them riskier investments.
Small
vs.
Large
Distressed companies tend to be riskier investments than more stable companies with stronger reputations. Sales, innovation, and technology are a few characteristics which can impact its stability.
Value
vs.
Growth
Companies with strong cash flows tend to perform better than companies with weak, or inconsistent cash flows.
Profitable
vs.
Not Profitable
Fixed Income Factors
(Bonds)
A bond is a loan you make to a company. The longer the term of the loan, the higher chance there is for them to default on the loan. This risk demands a higher return. The length of a bond is typically measured in years.
Short Maturity
vs.
Long Maturity
Companies have credit scores just like you and I. Higher credit = stronger bond. Companies with high credit ratings can be a less risky investment.
Low Quality
vs.
High Quality
EXPECTATIONS
- Consistent investment philosophy
- Portfolio construction based on Nobel Prize winning research*
- No crystal balls – we don’t predict, we prepare
- Help you understand how investments actually work
- Cultivate stronger decision-making skills
*Buttonwood Wealth's reference to Nobel Prize winning research pertains to Modern Portfolio Theory and Eugene Fama's Efficient Market Hypothesis. Asset allocation does not ensure a profit or protect against a loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio.
Diversification does not eliminate the risk of market loss. 1. Relative price as measured by the price-to-book ratio; value stocks are those with lower price-to-book ratios. 2. Profitability is a measure of current profitability, based on information from individual companies’ income statements.
Empower
Empower
OUR BELIEF
Money is a byproduct of our labor, time and sacrifice. It is a fundamental tool for creating opportunity and living out a legacy. Empowerment involves proactively guiding people from a state of thought to a state of action. Action towards living a life true to your nature and intentions, spending time doing things you enjoy. Your legacy is your story, the pen that writes it should be in your hand.
HOW WE DO IT
The Buttonwood experience gives you the controls. You decide which direction you want your life to go and we help you make the most relevant financial decisions to get there. Our success lies in using Nobel Prize winning research*, advanced planning technology, and a dynamic experience based on the idea of balance. This dynamic environment gives control back to you so that you can start living your story.
EXPECTATIONS
- Peace of mind
- More control over your finances than ever before
*Buttonwood Wealth's reference to Nobel Prize winning research pertains to Modern Portfolio Theory and Eugene Fama's Efficient Market Hypothesis. Asset allocation does not ensure a profit or protect against a loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
