Kopp Financial implements three strategies based on a client's needs and risk tolerance.
How do we pick stocks?
At Kopp Financial we believe it is important to build diversified portfolios and that investing in individual stocks is to risky. For this reason we prefer to invest in funds that invest in dozens or even hundreds of companies. We mostly use Exchange Traded Funds (ETFs) and will sometimes use traditional mutual funds.
When selecting funds, we follow the following strategies:
We prefer funds that include stocks that pay regular dividends.
Low fees are better than high fees, so we prefer funds that use low cost indexing strategies to funds that are actively managed.
We expect some diversification between large companies and small, but prefer larger, more established companies that are profitable and pay dividends.
We include some exposure to international markets, but mostly invest in U.S. based companies.