GHPIA At a Glance

What is an Asset Class?
A group of securities that have similar characteristics in terms of risk and return behavior over a long period of time. Generally, GHPIA builds portfolios that make use of several asset classes, changing the proportional weighting of each asset class based on our benchmark valuation system.

We Aim to Take Only the Amount of Risk
Necessary to Achieve Your Goals

At GHP Investment Advisors (GHPIA), we believe short-term volatility is difficult, if not impossible, to predict. Market timing and momentum plays are not part of the GHPIA approach. Rather, we seek to understand the long-term relationships between risk and reward — always with your needs in mind.

First and foremost, we are your investment advocate. Your individual circumstances, your needs, and your ultimate financial goals are what matter most to us. For each of our clients those needs and requirements are different, and change over time. We take all of that into account starting with the creation of a personal financial plan. This financial roadmap is designed to help you achieve your financial goals.

A Custom Portfolio
At GHPIA, we create custom portfolios (stocks, bonds, real estate investment trusts (REITs), mutual and exchange-traded funds) that are based on your individual circumstances and depend greatly on your particular stage in life. While this process is discussed in more detail in our Financial Planning and Portfolio Management services, our core investment philosophy is this: We aim to take only the amount of risk necessary to achieve our clients’ goals.

We begin this process with an analysis of the historical levels of risk and return for each individual security type, asset class, and market sector. A key part of this is the work we do with our GHPIA Benchmark Valuation based on our proprietary research.

Why the GHPIA Benchmark Valuation?
We believe that decisions about strategic asset allocation will have a major impact on your long-term investment results. That said, we quantify and measure risk using a variety of statistical tools that we bring together to assess your investment strategy. Whether we are looking at a security type, an asset class, a foreign stock, or a REIT, we establish a benchmark so we can determine if a potential investment is overvalued, undervalued, high-risk, or low-risk. In fact, we frequently monitor and select investments that eliminate the high-risk, and focus on moderate risk investments, all designed to meet your financial goals. We think our approach and expertise at establishing this benchmark valuation are key differentiators. We use an investment process that is rigorous, quantifiable, and helps us help you know when risk is getting too high for your investment strategy. And we do it in a myriad of ways across all investment categories.

GHPIA Proprietary Valuation Indicator
Methodology we use to help assess risk and opportunity in the stock market.

(For Demonstration Purposes Only)

2005 P/E
Valuation of a company's current share price compared to its per-share earnings.
GHPIA Benchmark
Proprietary estimate, based on the intrinsic value for each asset class.
Over/Under Valuation
Helps us try to eliminate the high-risk and focus on moderate risk investments, all designed to meet your financial goals.
Large Cap Growth 20.8 27.0 -23.0%
Large Cap Value 14.7 20.2 -27.2%
Mid Cap Growth 25.9 24.8  04.4%
Mid Cap Value 17.9 19.1 -06.3%
Small Cap Growth 17.1 23.2 -26.3%
Small Cap Value 16.0 18.2 -12.1%

Source: GHPIA benchmarks are based on a proprietary discounted cash flow model, and the PE ratios are from Bloomberg LP as of year-end 2005. Please note, this table is for demonstration purposes only; it is not intended as investment advice, and you cannot invest in these valuation indicators.