Investment Framework

Investment Framework

What we do is not rocket science. It is work. It isn’t conceptually difficult to understand. It is, however, difficult to do well. There is no formula, algorithm or process that ensures success – just hard work and attention to factors that matter.

Investment results and the risks that your investments carry have a huge impact on your well-being financial, personal, and mental. Accordingly, Townsend takes the business of investing very seriously, with the dual goal of preserving your capital and earning the high returns available in equities. We focus on value, as well as the factors that will likely influence your investments. And because times change, we also want to understand the broad investment backdrop and risk environment.

One of the most important elements of investment success is a workable and sensible investment philosophy that is applied consistently. Many professional investors and traders can operate without an investment philosophy and are either 1) short-term oriented and trade often; or 2) they give you an investment portfolio that looks like a benchmark such as the S&P 500 (called closet-benchmarking); or 3) they overdiversify their clients. Accordingly, they trade too often in the hopes of making a quick profit, or they are happy to give you a market return. We believe strongly that you deserve better.

As the chart below shows, neither trading often nor closet-benchmarking gives you high long-term returns or reduces risk. A long-term oriented portfolio of well-researched investments can give you high returns with low risk.

Why do most investors fare so poorly? Because performance chasing, buying ‘popular’ investments and market timing do not work. Imagine driving in traffic. On a highway full of cars some will constantly change lanes to try to get where they are going more quickly. But in traffic, as in investing, changing lanes doesn’t get you there faster. It gives you an illusion of going faster. And in the end all it does is create more risk of an accident. Similarly in investing, investment advisors can chase popular stocks that have risen in price in an attempt to outperform their peer group. This is what famed investor Seth Klarman calls the “performance derby”. The performance derby can induce advisors to take excessive risks and, because past price moves do not predict future price moves, it might not work out well for their clients.

Advisory services are offered through Townsend & Associates Inc., dba Townsend. Financial Advisors of Townsend are registered representatives of and offer securities through Securities America, Inc., Member FINRA/SIPC. Townsend and Securities America, Inc. are not affiliated. Privacy Statement | © 2021 Townsend

The BBB has determined this business meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. Townsend is accredited in Colorado only. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public. BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Securities licensed in the following states: AK, AL, AR, AZ, CA, CO, FL, GA, HI, IA, ID, IL, IN, KS, KY, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, NV, NY, OH, OK, OR, PA, SD, TN, TX, UT, VA, WA, WI, WY

Insurance licensed in the following states: AR, AZ, CA, CO, FL, GA, IA, ID, IL, KS, KY, MI, MN, MO, MS, MT, NC, ND, NE, NM, NV, OH, OK, OR, PA, SD, TN, TX, UT, VA, WA, WI, WY

SEC Registered Investment Advisor

Check the background of this firm on FINRA's BrokerCheck.

Please review Important Disclosure Information set forth in the last section of this website.


North Office Address

2761 West 120th Ave. | Westminster CO | 80234
Click Here to Find Us

South Office Address (No Mail)

2000 South Colorado Blvd. | Tower Two Suite 460 | Denver CO | 80222
Click Here to Find Us

Aspen Address

197 Prospector Road, Suite 2104A | Aspen CO | 81611

Office Hours

Mon-Thu, 8:00 a.m. to 5:00 p.m.
Fri, 8:00 a.m. to 12:00 p.m.



For any general inquiries or to schedule a FREE consultation, please fill in the following contact form:

    Inquiry Type (required):

    Skip to content