Asset Allocation Trumps
Stock Selection and Market Timing

Academically sound investment principles are the foundation of the Triton Wealth Management investment philosophy. Asset allocation is the term used to describe the selection of asset classes and the percentage of the portfolio invested in each class. Interestingly, the Brinson study revealed that asset allocation decisions account for roughly 92% of a portfolio's performance. This finding is contrary to what one might expect to determine a portfolio’s performance. Many who believe that superior stock selection and market timing are the keys to investment performance would be surprised to learn that these two factors account for only 6% of what actually determines performance. Simply put, the key to a consistently performing portfolio is well executed asset allocation, not picking hot stocks or trying to time the market.