Strategic Wealth Advisor Audiotech: Will it work for you?

Let’s start by saying that I am a huge fan of AudioTech and James O’Shaughnessy.   I have been a subscriber for many years.  I was actually an investor with James O’Shaughnessy when he was at Bear Stearns and believe in having a data driven approach to investing.

However, for individual investors, I don’t think that buying individual stocks from a newsletter is the best way to invest for the long term.  It may be ok for “fun money” or speculation but not for your retirement savings.

Here are the reasons why.

• Lack of diversification for Strategic Wealth Advisor Strategies

  • SWA- Premier – only 25 stocks
  • SWA Core Value – only 25 stocks
  • SWA Yield – only 10 stocks
  • Concentration of stocks in certain sectors and industries
  • No International stocks (large cap or small cap)
  • No Emerging Markets
• Take a look at the track record of Jim O’Shaghnessy’s mutual funds.  These funds were sold to Hennessy Advisors in June of 2000.  See below.

We believe a more optimal approach is to use Dimensional Funds (DFA) to structure portfolios along the dimensions of higher expected returns.  These 4 factors are market factor (beta), value factor, small cap factor and profitability factor.

See our Why DFA vs. Vanguard Funds page for more information.

Also see —

2014 – CNN- Money — David Booth beats the market without picking stocks – Jan

According to Morningstar 8/4/2014

O’Shaughnessy Enhanced Dividend I (OFDIX)       3 year return = 13.29% per year (49 holdings)

DFA Large Cap Value (DFLVX)                                     3 Year return = 23.46% per year (240 holdings)

Instead of Strategic Wealth Advisor Newsletter, we suggest you invest with Dimensional Funds (DFA)

So, instead of subscribing to the Strategyic Wealth Advisor newsletter and buying 50 to 60 stocks, we suggest you take a more institutional approach and learn how you can benefit from owning Dimensional Funds (DFA) in your portfolio.  We offer low cost direct access to DFA.  We can help you build a global portfolio of over 10,000 companies.

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Give us a call at 855-863-3332.

Integrity Investment Advisors, LLC is a fee-only independent Registered Investment Advisory Firm.  We serve clients on a national basis.  If you know anyone who may benefit from our services, please contact us.  2013 Press Release: Integrity Investment Advisors, LLC and Managing Partner Todd Moerman are pleased to have recently joined an exclusive group of wealth managers offering the low cost mutual funds of Dimensional Fund Advisors (DFA) to its clients.  We are an approved DFA advisor.

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product will be profitable.