Investment Framework

Wealth Habits helps you build a strategic investment portfolio comprised of asset classes to generate the real, long-term returns you need, while adhering to your risk tolerance.

Our Investment Guidelines

Summary: We invest in businesses with durable competitive advantages at a reasonable price.

We’ve theorized that, over the long term, businesses (and their stocks) reflect their return on invested capital, and that this factor drives the majority of their return.

Contrarian Investors

We find some of the best opportunities in areas where capital is scarce, providing us with better opportunities.

Maximizing Long-Term Return on Invested Capital

We aim to acquire assets that are, or will, produce a real world return on invested capital above their capital cost.

Focus on a Total Return on Invested Capital

We measure success by maximizing the ratio of long-term shareholder return to total capital invested – in short, we think you should get out more than you put in.

Seeking Both Profitability & Growth

We seek investments that offer a good value now and are able to grow profitably in the future (a sustainable competitive advantage).

Competitive Advantage

We believe that a sustainable competitive advantage will lead to above-average returns.

Cost of Capital Also Matters

We have learned that some opportunities outperform others because they can take advantage of lower capital costs.

Long-Term Investment View

We work with those who can sacrifice short-term profit, if necessary, to achieve superior, long-term capital appreciation. We are not afraid of firms that prioritize long-term growth.

Investor Alignment

We believe in investor alignment and practice it by favoring founder run companies and by building our strategy around your goals and priorities.

Separate Account Management

With separate account management, your funds are held in your name in your own account – never in ours.

By offering separate account management, we ensure the complete transparency of our investment process, as well as your total control of access to your funds.

Strategy & Approach

Our general strategy is to make meaningful investments in high-quality, predictable businesses that can be expected to grow in value at high rates and are currently available at cheap prices.

We implement this is by creating a rules-based system of investing… A checklist.

We think of each investment like a business owner. We prefer to invest in businesses that are:

  • Simple and predictable
  • Consistently profitable, with a high return on invested capital
  • Show favorable long-term trends and reinvestment opportunities 
  • Promote shareholder-friendly management
  • Hold significant value

Risk Management

We also take into consideration your personal situation by adjusting your portfolio based on your goals and risk tolerance. Our efforts focus on these points:

  • Risks taken are within our mandate and your defined bounds 
  • Key risk attributes and potential downside risks for the portfolio and each strategy must be well-communicated by Wealth Habits and well-understood by the Client
  • Risks taken are commensurate with the expected returns and efficiently allocated to optimize the overall risk-reward ratio of the portfolio

We are on a mission to increase your investment performance 

Technology:  We utilize smart technology to optimize and foolproof sophisticated investment strategies. We automate our investment process and risk management in order to remove all biases.

Ongoing guidance: Our platform provides ongoing guidance that grows with you and your money. Whenever you have questions, you can chat with me.

Personalization: We customize portfolios to help you invest the way you want and devise strategies to help you earn better returns at your desired risk level. 


How can we help?

Not finding what you’re looking for? Our support team is here to help.

What differentiates Wealth Habits from other firms?

Size: We are nimble, and able to move quickly without creating any effect in the market.

Global Platform: We are able to invest globally and move capital where it is scarce.

Limited Restrictions: We are mainly guided by the restrictions clients impose on us, nothing else.

Investment Philosophy: We provide specialized financial planning coupled with an investment philosophy that is mostly relegated to niche firms in the market.

Why does Wealth Habits have such a strong focus on investments?

Compounding. We believe that an extra 2% or 3% annually over 30 years can change the way you retire, and therefore, the way you live.

How has Wealth Habits performed?

Every person has their own appetite for risk – their portfolios will look different, and so will their performance.

What are Wealth Habits' Fees?

Our fees are public and posted here.

Why doesn't Wealth Habits invest primarily in ETFs?

ETFs have their own set of risks and haven’t been tested in a full-market crisis. We prefer to invest safely and directly into stocks when possible. The benefit of investing directly into stocks is that you get to choose your investments. The disadvantage is that you might incur some trading costs in implementing the portfolio. These costs are negligible in a large portfolio, but in a small account they can add up to a substantial amount.

How long does Wealth Habits hold a stock?

Usually, stocks are held for a multi-year period. Some have been in our portfolio since inception, and others for only a couple of quarters. It depends on a variety of factors.

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