Since 1989... One Investment Philosophy
"The 'client investing experience' has always been, and will continue to be, our focus and most important element after our family of clients customized 'DiNuzzo Financial Wellness LifePlan™' guidance has been developed."
-- P. J. DiNuzzo, Chief Investment Officer
"DiNuzzo Investing™" is about our legacy and ongoing commitment to implementing the great ideas in modern finance for our clients benefit to provide the "fuel" and "energy" for their unique "DiNuzzo Financial Wellness LifePlan™." "DiNuzzo Investing™" was built on a foundation of "standing on the shoulders of giants" with great ideas bigger than our firm itself. With a confidence in the capital markets and their "price discovery" process, a deep belief in the academic community, empirical research, and a focus on implementation, we go where the science leads, and continue to pursue new insights, both large and small, that can benefit our family of clients household "client investing experience."
At "DiNuzzo Investing™", our investment approach is based on an enduring belief in the power of markets. Capital Markets have rewarded long term investors. Rather than relying on futile forecasting or trying to outguess others, we draw information about expected returns from the market itself--letting the collective knowledge of its millions of buyers and sellers set security prices through the process of "price discovery."
Letting markets do what they do best--drive information into prices (price discovery)--frees us to spend our portfolio management time where we believe we can potentially have an advantage, how we customize Asset Allocations through our "DiNuzzo Money Bucket Stack Analysis™", how we interpret the research, how we design and manage portfolios, and how we service our clients. It means we take a less subjective, more systematic and pragmatic approach to investing--an approach we can implement consistently and investors can understand and stick with, even in challenging market environments.
"DiNuzzo Investing™", investment approach is grounded in economic theory and backed by decades of empirical research. Our Portfolio Management Team works closely with Dimensional Fund Advisors (DFA) and their relationship with leading financial economists to better understand where returns come from.
Research has shown that securities that offer higher expected returns share certain characteristics, which we call "dimensions" or "premiums". To be considered a dimension or premium, these characteristics must be sensible, persistent over time, pervasive across markets, and cost--effective to capture. The current equity (stock) premiums we focus on to include in our client's portfolios are: Equity, Value, Small, and Direct Profitability. The current fixed income (bond) premiums we focus on to include in our client's portfolios are: Term, and Credit.
Understanding what drives returns is the starting point. From here, we focus on fine--tuning our method of capturing them. "DiNuzzo Investing™", invests in broadly structured, index based, globally diversified portfolios that emphasize the dimensions/premiums of higher expected returns, while addressing the tradeoffs that arise when executing portfolios.
Every day Dimensional Fund Advisors (DFA) portfolio managers and traders seek to balance costs against expected returns and diversification, they work for the slightest expected gain, as every incremental improvement can add up over time.
"DiNuzzo Investing™" is about providing a successful "client investing experience." That means more than just considering investment returns and even more than correctly focusing solely on risk-adjusted returns. It means knowing that a transparent investment: philosophy, strategy, implementation, discipline, and rebalancing approach backed by decades of research is powering every decision in order to provide peace of mind when implemented within our client's "DiNuzzo Financial Wellness LifePlan™."
Markets go up and down and will understandably always continue to do so. The goal of "DiNuzzo Investing™" is to help people be prepared, so they can maintain discipline and stick with their investment plan.
An environment of: authenticity, prioritization, passion, gratitude, learning, teamwork, innovation, and dedication striving to always "do what's right" for our family of clients drives "DiNuzzo Investing™" people and culture. We are passionate about what we do, and through our close relationships with Dimensional Fund Advisors (DFA) and consultants we've seen the difference our philosophy and approach have made in people's lives over the past 30+ years.
The assets we manage represent more than shares in a portfolio. The money we manage represents the savings, sacrifice, goals, needs, wants, dreams, wishes, and legacy that our clients have entrusted to us. We refer to this as, and consider it to be, our "sacred responsibility."
Since 1989, DiNuzzo Private Wealth, Inc. dba DiNuzzo Wealth Management, has a long history of applying Efficient Market Theory and academic research for the practical investing benefit of our clients.
* Please Note - Use of DFA Mutual Funds: DWM utilizes mutual funds issued by Dimensional Fund Advisors (“DFA”). DFA funds are generally only available through registered investment advisers approved by DFA. Thus, if the client was to terminate DWM’s services, and transition to another adviser who has not been approved by DFA to utilize DFA funds, restrictions regarding additional purchases of, or reallocation among other DFA funds, will generally apply. Please Also Note: In addition to DWM’s investment advisory fee, and transaction and/or custodial fees, clients will also incur, relative to all DFA mutual fund purchases, charges imposed at the fund level (e.g. management fees and other fund expenses).
ANY QUESTIONS: DWM’s Chief Compliance Officer, Patrick J. DiNuzzo, remains available to address any questions that a client or prospective client may have regarding the above.