When clients ask, “How do you decide which stocks go in my portfolio?”—we know they’re not just making small talk. They want to understand the thought process behind something that can seem opaque and intimidating. So, let’s pull back the curtain.
Step 1: Start With You
Before a single stock ticker enters the chat, we start with you—your goals, timeline, risk tolerance, tax situation, and yes, even your emotional reaction to market volatility. Your portfolio isn’t built on trends or hunches. It’s built on the foundation of your life.
Are you planning to retire in 5 years or 25? Running a business or managing new financial realities post-divorce? These details matter. Our investment strategy isn’t one-size-fits-all because you’re not.
Step 2: Build the Framework—Asset Allocation
Stocks are just one part of the picture. We design your asset allocation (the mix of stocks, bonds, and other assets) based on your goals and risk tolerance. Think of it like a well-balanced meal—stocks may be the steak, but we still need the veggies (bonds), grains (alternatives), and maybe a glass of wine (cash) for balance.
The right asset allocation is the single biggest driver of long-term performance. Not hot stock picks. Not market timing. Just smart, boring, reliable balance.
Step 3: Choose the Right Sectors and Styles
We don’t chase headlines or try to predict the next meme stock. Instead, we look for well-diversified exposure across sectors (like healthcare, technology, or consumer staples) and investment styles (like growth or value). If the tech sector is sprinting and utilities are crawling, we’re not panicking—we’re balancing.
And yes, we also pay attention to what’s going on in the world. If inflation is cooling and interest rates are stabilizing, as we’ve seen recently, that influences how much weight we give certain sectors.
Step 4: Diversify, Then Diversify Again
We don’t bet the farm on one company, one sector, or one country. Concentration can feel comfortable, especially if you work in an industry you know well. But overexposure to one stock—even your company’s stock—can be risky. A diversified portfolio helps reduce that risk and smooth out the ride.
Put another way: we like peanut butter, but we don’t make it every meal.
Step 5: Due Diligence & Discipline
We rely on deep research, professional-grade data, and a disciplined process. We evaluate fundamentals, earnings, valuation, competitive positioning, and long-term trends. And once your portfolio is constructed, we review it regularly.
Rebalancing, tax-efficiency, and strategic adjustments are part of the ongoing maintenance—like taking your financial car in for regular tune-ups.
The Bottom Line?
We don’t pick stocks. We construct portfolios.
Our process is guided by a fiduciary standard, rooted in decades of research, and personalized to your situation. If you’re ever wondering why a specific investment made the cut—or didn’t—give us a call. We’ll happily walk you through it. No jargon, no judgment, and no dartboards involved.
📞 Want a second opinion on your portfolio or just need clarity? Call us at 215-348-3176 or email us to schedule a consultation.
ABOUT CHARLES
Charles McNamara, III (Charlie), is a Founding Partner, Financial Advisor, and President at Paragon Wealth Management, a financial services firm based in Doylestown, Pennsylvania, dedicated to professionally supporting, educating, and providing informed direction to each and every client. Charlie’s passion for working with clients one-on-one to find specialized solutions to pursue their financial goals drives the firm’s client-focused mission and continued success. He values the confidence clients have in him to always keep their best interests in mind.
A veteran of the financial services industry since 2000, Charlie brings an extraordinary level of knowledge and experience to the financial field. After obtaining a business finance degree from Delaware Valley University, he began his career as a financial advisor with Prudential Financial in 2001, and was promoted to management in only three years due to his hard work and dedication. With an entrepreneurial spirit and a passion for helping people solve problems, he launched his own practice in 2007.
When he’s not at work, Charlie spends time with his wife, Lisa (co-owner of local salon Moxie), daughter, Carissa, and their two dogs and cat. He enjoys weightlifting, running, golfing, fishing, and giving back to the community through his church, Our Lady of Mt. Carmel, and local organizations, such as the Travis Manion Foundation. To learn more about Charles, connect with him on LinkedIn.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Paragon Wealth Management and Great Valley Advisor Group are separate entities from LPL Financial.