Clients who come to MONTAG have amassed wealth in a variety of ways, whether from successful business creation, earnings from professional careers, liquidation of other assets such as real estate, inheritance, or any number of other ways personal or family wealth can be created over time.  A common thread among MONTAG clients is the motivation to PROTECT and GROW their capital.  The “PROTECT” function speaks directly to the notion of wealth preservation.

The proverb “A bird in the hand is worth two in the bush” comes to mind when considering wealth preservation.  The idea of risking the loss of something already in possession (one bird, or existing wealth) for the prospect of more (two birds, or growth in principal) is unappealing to people primarily motivated by protecting their wealth.  Clients’ risk aversion must be taken into account when investment objectives are designed.

Naturally, clients whose investment objectives are geared toward protecting principal need to be prepared for a more limited upside as to portfolio growth over time.  Protection can be expected to come at the “cost” of some growth.  The trade-offs over time can be significant, and these matters should be the subject of robust discussion between clients and their MONTAG portfolio manager.

For an expanded discussion of MONTAG’s Methods of Analysis, Investment Strategies, and Risk of Loss, please consult our firm’s latest Form ADV Part 2A – available upon request.



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