Byrne Asset Management LLC
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About Us
   Philosophy
   Tom Byrne
   Art Ernst

Letters to Clients

Published Articles

Investment Process
   Understand client
   Look everywhere
   Allocate assets
   Stock selection matrix
  
   Selection example
      The Prime Box
   Diversify
   Monitor

Performance
   Quarterly numbers
   Growth in assets
   Return versus risk
   Advanced statistics

Managed Accounts
   Planning
   Risk tolerance

Retirement Plans
   Our platform
   Model portfolio stats
   Choosing funds
   Risk questionnaire

Education
   Asset allocation
   Growth / value
   Capitalization
   Rebalancing
   Risk-investment
   Risk-inflation

Disclosures

Contact

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Risk Tolerance

In finance, there are different types of risk that more often than not increase in magnitude as higher rates of return are sought. As we try to maximize results for your portfolio, it is important that we do so within the constraints of your tolerance for risk. Though we attain a fuller understanding of your attitudes in person, below are some concepts you should consider when investing.

Domestic versus international

bulletAre you comfortable investing in firms based outside the U.S.?
bulletIf yes, are you comfortable investing in companies outside of North America, Europe, and Japan?

Name recognition

bulletAre you comfortable investing in companies which you have never heard of beforehand?
bulletIf yes, does that comfort extend to firms only a few years old?

Losses

bulletCan you handle losing money for a month? for a year? for two years in a row?
bulletThough confident of long-term gains, can you handle a temporary loss of 2% of your assets? 5%? 10%? 25%?

Volatility

Consider the following investments:

Investment A has always returned 3% per year
Investment B has an average annual rate of return of  7%, with a best 1-year return of 30% and a worst return of minus 30%

If these were the only choices available, how would you allocate assets between them?
Which would you choose if you had to put all your money in only one of them?

Time horizon

Would answers to any of the above be different for:
bulletFunds you are saving for retirement
bulletMoney intended for a large purchase in 5 years
bulletExcess cash on hand but needed for expenses within a year

Click here to learn more about risk. Click here for personal consultation.