Investing is a process, not a product.
Long Term Investing
Due to the uncertainty of security prices, Parsec firmly believes that investments in a given asset class should be made for a long-term time frame, preferably longer than ten years. This is critical to investment success because it allows the long-term characteristics of the asset classes to surface. Short-term portfolio spending needs are considered in the long- term asset allocation decision.
Diversification is critical to the portfolio management process. We believe the design and diversity of the portfolio as a whole is more important than the selection of any particular security within the portfolio. Our diversification strategy is to create a portfolio consisting of a balance between growth and value companies, large, medium and small companies, as well as international companies, which may include emerging markets. The fixed income component is diversified as well.
No Market Timing
Parsec strongly believes that investors should not engage in market timing. This includes timing the purchase or sale of investments, as well as giving up on the market as a whole and sitting out for periods of time until things "look better." Though tempting, timing the purchase or sale of securities based on an attempt to guess which direction the market will go is highly unlikely to increase long-term investment returns.