Our Goal is Not to Outperform the Stock Market

October 11, 2021

This may come as a shock to you. Are you sitting down?

Our aim at Johnson Wealth Management is not to beat the stock market.

We are not a hedge fund. (And even they don’t always outperform the market). We don’t wake up every morning looking for the hottest stock. Nor are we trying to be the next famous investor.

We are doing our best to know our clients well and manage their portfolios in such a way that they live and leave a legacy

Everyone wants to beat the market, but not everyone has a risk tolerance to do so. Why? Because if you are in it to beat the market, you also must be in it to take heavy losses. If you live by outperformance, you can die by underperformance.

Managing risk is one of the most important jobs we have for our clients. By necessity, this means our goal is not to allocate a client’s portfolio to beat the market. Instead, we want to make sure the client benefits from the market via their appropriate risk appetite as they reach for their unique long-term goals.

Sometimes we beat the market. Sometimes we don’t. And that’s ok.

You will not live and leave a legacy by living and leaving the market based strictly on performance. But you just might live and leave a legacy when you benefit from an investment portfolio aligned with your risk tolerance over decades of investment participation.

If you or someone you know is exhausted with chasing performance or has been burned by it and is looking for a long-term financial advisor that places a high value on risk management, click this free portfolio risk analysis tool and one of our advisors will reach out to you.