Our Investment Process
Research-Driven Investment Management | Last Updated: September 3, 2026
At Di Bello Financial, we build and actively manage customized investment portfolios designed around each client’s goals, risk tolerance, investment objectives, liquidity needs, and tax situation. Rather than relying on third-party model portfolios, we conduct our own investment research and actively manage portfolios using individual stocks, customized bond ladders, and carefully selected low-cost ETFs.
Annette Di Bello, as a CPA, PFS, and CFP® professional, integrates investment management with tax strategy and comprehensive financial planning to help clients pursue stronger after-tax outcomes over time.
Our portfolio construction process is designed to seek attractive risk-adjusted returns over full market cycles. We evaluate results using measures such as alpha, beta, standard deviation, and Sharpe ratio as part of our ongoing portfolio management process. Rather than assuming greater market risk to pursue higher returns, we strive to add value through disciplined security selection, thoughtful portfolio construction, tax-efficient management, and ongoing research while maintaining an appropriate level of risk for each client.
Independent Research
Every investment decision begins with research.
Our process includes analyzing:
- Company financial statements and SEC filings
- Quarterly earnings calls and management commentary
- Wall Street analyst research
- Company news and business developments
- Industry and sector trends
- Economic and market data
- Statistical analysis
- Geopolitical developments that may influence markets
We continually evaluate long-term investment themes driven by technological innovation, demographic shifts, economic conditions, and geopolitical developments while seeking high-quality companies with attractive valuations, strong fundamentals, and long-term growth potential.
Customized Portfolio Construction
No two clients receive identical portfolios.
Every portfolio is customized around the client’s financial goals, tax situation, investment objectives, income needs, liquidity requirements, and risk tolerance.
For new clients transferring appreciated securities, we carefully evaluate embedded unrealized capital gains before making investment changes. Rather than immediately liquidating existing holdings, we often develop a customized transition strategy that balances diversification, investment risk, tax consequences, and long-term objectives. This allows us to improve portfolio positioning while helping manage unnecessary capital gains taxes.
Individual stocks represent the majority of the equity allocation in all client portfolios and form the foundation of our investment philosophy. Our equity portfolios typically include approximately 70 to 80 companies diversified across multiple industries and sectors, providing broad diversification while allowing greater customization, transparency, and tax-efficient portfolio management.
Strategic Use of ETFs
While individual securities form the core of our investment philosophy, low-cost ETFs generally represent approximately 25% to 30% of client portfolios and provide efficient exposure to:
- International equities
- Small-cap equities
- REITs
- Commodities
- Gold and precious metals
- Short-term fixed income and cash management
Combining individual securities with low-cost ETFs helps maintain a cost-efficient portfolio while allowing us to remain nimble as opportunities arise. Direct ownership also provides greater flexibility for tax-loss harvesting, capital gain management, portfolio rebalancing, and customized investment decisions throughout the year.
Custom Bond Management
For clients requiring fixed-income investments, we frequently construct customized bond ladders using investment-grade corporate bonds, U.S. Treasury securities, and municipal bonds when tax-efficient and appropriate.
Each ladder is designed around the client’s income needs, tax situation, liquidity requirements, and our outlook for interest rates, duration, and credit quality. By using individual bonds rather than relying solely on bond funds, we can better customize cash flows, manage interest-rate risk, and improve tax efficiency.
Active Portfolio Management
Investment management is an ongoing process.
We continuously monitor company fundamentals, earnings results, valuations, competitive positioning, industry developments, economic conditions, and geopolitical events. If our investment thesis changes because of deteriorating fundamentals, management execution, competitive pressures, valuation concerns, or changing industry trends, we may reduce or eliminate a position.
When appropriate, we may also trim appreciated positions to manage risk, rebalance allocations, lock in gains, and maintain appropriate diversification while continuing to participate in a company’s long-term potential.
Measuring Results
Portfolio management extends well beyond selecting investments.
We continually monitor portfolio performance, diversification, asset allocation, tax efficiency, and risk characteristics while comparing results with appropriate market benchmarks. Our analysis includes risk-adjusted measures such as alpha, beta, standard deviation, and Sharpe ratio to evaluate performance relative to the risks assumed.
Clients receive comprehensive monthly and quarterly reporting and enjoy secure online access to the Black Diamond® Client Portal, where they can view portfolio performance, holdings, transactions, asset allocation, realized and unrealized gains, statements, and other portfolio information at any time.
Integrating Tax Strategy
Because Annette Di Bello is a CPA, PFS, and CFP® professional, tax considerations are integrated into our
investment decisions whenever appropriate.
Portfolio management involves more than selecting investments—it also requires managing after-tax outcomes. Our process incorporates tax-loss harvesting, capital gain management, asset location, municipal bond analysis, and customized transition strategies for appreciated securities to help improve long-term after-tax results.
A Long-Term Investment Philosophy
Successful investing requires discipline, independent research, thoughtful risk management, and the flexibility to adapt as markets, businesses, and tax laws evolve.
By combining independent investment research, customized portfolio construction, active portfolio management, integrated tax strategy, and comprehensive financial planning, we seek to help clients build, preserve, and transfer wealth while pursuing attractive risk-adjusted returns over the long term.
Related Resources:
Why We Use Individual Stocks Instead of Mutual Funds
How We Build Tax-Efficient Investment Portfolios
Managing Concentrated Stock Positions Without Creating an Unnecessary Tax Bill
Investment Management Planning Scenarios
Investment objectives, portfolio allocations, securities, and results vary by client. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will achieve its objectives or generate positive alpha.
About the Author
Annette Di Bello, CPA/PFS, CFP® is the Founder and President of Di Bello Financial, an independent, fee-only Registered Investment Advisor based in Mission Viejo, California. With nearly four decades of experience in accounting, taxation, investment management, and financial planning, she specializes in helping high-net-worth individuals, business owners, executives, and retirees integrate sophisticated investment strategies with proactive tax planning.
Unlike firms that rely primarily on model portfolios or mutual funds, Annette personally designs and actively manages customized portfolios using individual stocks, custom bond ladders, and strategic ETF allocations. Every investment decision is guided by independent research, disciplined risk management, and tax-efficient portfolio construction tailored to each client’s unique financial objectives.
Annette is both a Certified Public Accountant (CPA) and a Personal Financial Specialist (PFS)—the American Institute of CPAs’ advanced financial planning credential—as well as a CERTIFIED FINANCIAL PLANNER® (CFP®) professional. This combination of credentials allows her to integrate investment management, tax strategy, retirement planning, and comprehensive wealth planning into a coordinated financial strategy.
Through Di Bello Financial, she is committed to providing objective, fiduciary advice with transparency, disciplined portfolio management, and personalized service designed to help clients pursue their long-term financial goals.
© 2026 Di Bello Financial, All rights reserved.
Our Investment Process at a Glance
Our Approach
Research-Driven Investment Management
Every investment decision is supported by extensive research, including financial statements, earnings calls, analyst reports, economic data, industry trends, and geopolitical analysis.
Customized Portfolios
Every portfolio is tailored to the client’s goals, risk tolerance, liquidity needs, and tax situation—never a one-size-fits-all model.
Individual Stocks First
Individual stocks represent the majority of the equity allocation in every portfolio, providing transparency, flexibility, and tax-efficient customization.
Strategic ETF Allocation
Low-cost ETFs generally comprise 25–30% of portfolios and are used for international equities, small-cap stocks, REITs, commodities, precious metals, and short-term fixed income.
Custom Bond Ladders
Investment-grade corporate, U.S. Treasury, and municipal bonds are individually selected to align with income needs, tax efficiency, duration, and interest-rate expectations.
Tax-Aware Investing
Because Annette Di Bello is a CPA, PFS, and CFP® professional, investment decisions are coordinated with tax strategy, including tax-loss harvesting, capital gain management, and transition planning for appreciated assets.
Active Portfolio Management
Portfolios are continuously monitored and adjusted based on company fundamentals, valuations, market conditions, and changing economic and geopolitical trends.
Risk-Adjusted Performance
Portfolios are managed with the objective of seeking positive alpha relative to the portfolio’s beta while maintaining an appropriate level of risk for each client.
Performance Reporting
Clients receive monthly and quarterly performance reports and enjoy secure 24/7 access to their portfolios through the Black Diamond® Client Portal.
Long-Term Focus
Our objective is to help clients build, preserve, and transfer wealth through disciplined investment management, integrated tax planning, and comprehensive financial planning.
How We Allocate Client Portfolios
How We Allocate Client Portfolios: Last Updated: September 3, 2026
Individualized Portfolio Design
Every portfolio is individually allocated based on the client’s risk tolerance, investment objectives, time horizon, liquidity needs, tax circumstances, and overall financial plan. Firm-wide allocations are not model portfolios.
Current Firm-Wide Allocation
Approximately 63% traditional equities, 31% fixed income, 5% real assets and diversifiers, and 1% or less in cash and short-term investments.
Active Individual Security Selection
Approximately 90% of equity exposure is held in individual stocks, with approximately 10% in equity ETFs. This allows greater control over security selection, diversification, rebalancing, and taxes.
Individual Bonds + Selective ETFs
Approximately 62% of fixed income is held in individual bonds and 38% in bond ETFs, allowing us to consider credit quality, maturity, cash-flow needs, after-tax yields, and client-specific time horizons.
Tax Efficiency Embedded in the Process
Tax considerations are incorporated throughout portfolio management through asset location, tax-loss harvesting, gain management, tax-aware rebalancing, municipal-bond analysis, and coordination with individual client tax circumstances.
Researching What Comes Next
We continually research new technologies, scientific breakthroughs, cutting-edge developments, and emerging opportunities across all sectors—from AI, cybersecurity and quantum computing to biotechnology, robotics, aerospace, energy infrastructure, advanced manufacturing, and beyond.
Disciplined Diversification
We combine established businesses, selected emerging-growth opportunities, international investments, fixed income, and real assets to diversify portfolios across different economic drivers and sources of risk.
Continuous Active Management
Portfolios are continually monitored for valuation, fundamentals, position size, changing technologies, competitive threats, tax consequences, and new investment opportunities.
Our objective: Build individualized, tax-efficient portfolios designed to participate in long-term growth while managing risk and adapting to a continually changing investment landscape.
How We Build Tax-Efficient Investment Portfolios
Why We Use Individual Stocks Instead of Mutual Funds
Asset Location: Why Where You Hold Investments Can Matter as Much as What You Own
About the Author
Annette Di Bello, CPA/PFS, CFP® is the Founder and President of Di Bello Financial, a fee-only Registered Investment Advisor headquartered in Mission Viejo, California.
With nearly four decades of progressive experience in accounting, taxation, financial planning, and investment management, Annette helps high-net-worth individuals and families, business owners, executives, physicians, and retirees coordinate investment decisions with tax strategy and long-term financial planning.
As a Certified Public Accountant (CPA) with the Personal Financial Specialist (PFS) credential and a CERTIFIED FINANCIAL PLANNER® professional, Annette brings an integrated perspective to portfolio management, retirement planning, tax strategy, estate planning coordination, and wealth preservation.
Di Bello Financial serves clients throughout Orange County, Los Angeles County, San Diego County, and other states where permitted by law.
Important Disclosure: The investment allocations and portfolio characteristics discussed above represent approximate aggregate firm-wide exposures as of August 28, 2026 and are provided solely to illustrate Di Bello Financial’s general investment approach. They do not represent an individual client portfolio, model portfolio, composite, target allocation, performance presentation, or recommendation to buy or sell any security. Individual client portfolios may differ materially based upon each client’s investment objectives, risk tolerance, time horizon, liquidity needs, tax circumstances, account type, and other relevant considerations. Portfolio allocations, securities, and investment strategies are subject to change without notice. Tax strategies and their effectiveness depend upon individual circumstances and applicable tax law; Di Bello Financial does not guarantee any particular tax result. References to investment themes, emerging technologies, or industries are illustrative of areas the firm may research and do not constitute recommendations or assurances that such investments will be profitable. Investing involves risk, including the possible loss of principal.