The David Lerner Associates Investment Philosophy

The David Lerner Associates Investment Philosophy

Core Facts

 [ What is this? ]


At David Lerner Associates we feel that an investment plan begins with a foundation or philosophy.  Ours is simple — we call it “the sensible middle ground of investing.”

This philosophy is based on the belief that, somewhere between the extremes of investments with very low levels of volatility and risk and investments with high degrees of volatility and risk, there lies a sensible middle ground. Helping investors find this middle ground has been our guiding investment philosophy since the company was founded more than three decades ago, and it remains so today.

An Investment Paradigm
Think of our sensible middle ground of investing philosophy as a paradigm with three levels. It encompasses the following asset allocation model that we consistently recommend to clients:

1. The largest portion of the portfolio should be made up of investments that are income or yield driven and typically the call value and/or face amount is guaranteed at the call date, maturity or final pay down. We would include in this section taxable and tax-free municipal bonds and certain CMOs.

2. The next portion of the portfolio consists of investments that are designed to offer higher income and may have the potential for capital appreciation, but do not have the underlying safety of government guaranteed securities. We would include in this category non-publically traded REITs and income-based mutual funds.

3. The final portion of the portfolio includes market driven securities. While upside potential may be greater, the investor faces increasing uncertainty. We would include mutual funds that seek capital appreciation as their main objective in this category.

We take into consideration the client’s entire financial picture and how assets outside of the firm are placed when figuring the asset allocations. Adjustments are also made in consideration of the age, risk tolerance and needs of the client.

Our Core Beliefs
The sensible middle ground of investing philosophy incorporates the following beliefs:

  • We believe that gambling and investing are not the same.
  • We believe that the stock market should make for interesting dinner conversation, but should not be a matter of financial life or death.
  • We believe we have an obligation to guide our investors in directions we feel will help them achieve their financial objectives.
  • We believe that investors should not be chasing financial rainbows.
  • We feature investments that we believe are based on real value and are designed to regularly pay dividends or interest.

To learn more about the David Lerner Associates investment philosophy and how this philosophy may help you reach your investment goals, please contact David Lerner Associates at (877) 367-5960.


^ Top


At David Lerner Associates we believe in the sensible middle ground of investing. We do not run with the herd. We pursue these fundamental investment principles regardless of market conditions. We offer many investment opportunities, some designed to provide income.

Founded in 1976, David Lerner Associates is a privately-held investment company with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates 1 877 367 5960

Like us on Facebook

Follow David Lerner Associates on Twitter

^ Top