Albert Einstein identifies the power of an essential investing dynamic calling it the "Eighth Wonder of the World."  That dynamic is positive compounding.  When positive returns are earned period after period, your capital base has the effect of growing exponentially since future returns are applied to your original investment plus all previous gains.  The only obstacle that severely diminishes the effects of positive compounding is a meaningful loss.  This dynamic is pivotal for building sustainable wealth with your investments. 

Volatility is another important driver of compound returns.  Two portfolios can have identical average annual returns over a period of time.  However, the portfolio that is less volatile will have a substantially greater total return and more wealth in the end.

Investing in the financial markets in today's environment is filled with many challenges.  The climate often changes quickly and oscillates between favorable conditions and major disruptions.  The interconnectedness across global markets and asset classes provides significant opportunities as well as chain-type reactions.  These factors create both risk for a meaningful loss and volatility.

Investors have become more confused in how to adapt to this environment in order to grow their wealth but at the same time ensure they avoid significant losses to their capital base.  Heritage Capital Partners, Inc. understands the importance of protecting one's capital base, especially as it becomes the primary source of earning power in retirement. 

As a result, Heritage gives equal attention to managing risks as it does in discovering new opportunities.  This balance is critical in pursuing positive compound returns with reduced volatilty.