Philosophy

Alignment of Interest

Client trust is the most valuable asset of a company.  Hong Tran Financial wishes to not only eliminate potential conflicts of interests with it's clients, but to create alignments of interest so as to earn and foster client trust.  The company philosophy is to never receive commissions so we can focus on clients' needs.  To further align our interests, we also invest our own money in the same investments that clients invest in.

Capital Preservation

In order to have successful investments, a top priority must be capital preservation. For example, in order to recover from a 25% drop, your investment would have to increase by 33%. This highlights the importance of buying cheaply and selling dearly.  Hong Tran Financial adheres to this principle and handles our investment selections accordingly.

Fundamental Analysis

Benjamin Graham stated that, in the short term, the stock market is a voting machine, with each stock price reflecting the popularity of that particular stock. In the long term, the market is a weighing machine, adjusting the price of the stock with its intrinsic value as a business. Hong Tran Financial analyzes investments based on business valuation fundamentals and are not swayed by the exuberances and depressions in the market, but rather take advantage of these opportunities.

Dollar Cost Averaging

In the short term, market exuberance can take hold of investments, obscuring their true intrinsic value. As such, Hong Tran Financial believes that dollar cost averaging using a mixture of systematic and discretionary investments will produce a better overall purchase price.

Asset Allocation

Hong Tran Financial selects investments with low overall management expenses which will provide broad diversification in the client’s portfolio.  Your portfolio will consist primarily of a diversified allocation of stocks, bonds, and cash.