Wesley Yamamoto, Executive Managing Director, Pathstone – Philadelphia

In an interview with Invest:, Wesley Yamamoto, executive managing director at financial advisory and services firm Pathstone, said that staying focused on long-term goals and maintaining a diversified portfolio is key to navigating today’s volatile market. “We’ve stayed focused on maintaining a long-term view, looking five to 10 years ahead rather than reacting to short-term news cycles.”

Over the past year, what changes have most influenced your clients’ financial decision-making, and how has that shaped your approach to advising them?

Anyone following the news knows that, particularly in the United States, which is where the majority of our clients are based, although we do have some international clients, American geopolitics has had a global impact. We had a major election last November, followed by significant shifts in fiscal policy and even reversals of those changes. These developments have contributed to market volatility.

For long-term investors like us, this volatility has created both challenges and opportunities. We’ve stayed focused on maintaining a long-term view, looking five to 10 years ahead rather than reacting to short-term news cycles. Despite the instability, we’ve seen that investors who remain patient and diversified have been rewarded.

One noteworthy event was the sweeping tariff announcements in early April, which triggered major fluctuations due to the start-and-stop nature of trade wars with China and other key trading partners. Still, the U.S. economy has shown resilience, and most investors have come through relatively unscathed so far.

Interestingly, for the first time in about 15 years, markets outside the largest U.S. companies have outperformed. Investors with exposure to regions like Western Europe and emerging markets in Latin America and Southeast Asia have seen particularly strong returns. This has validated our approach of maintaining a recommendation to stay diversified and not simply chasing the best-performing asset classes. That’s fundamental to sound investing.

What are you hearing most from clients when it comes to economic outlooks and their top concerns for the next few years?

It has only been a few years since we went through a period of significant inflation, and that really shook people, not just in the United States, but globally. It affected households and businesses alike, hitting pocketbooks and supply chains. While there’s optimism around continued government spending and lower tax rates, there’s also concern about inflation creeping back, especially due to tariffs or supply chain disruptions.

Our clients remain highly focused on this risk because the Federal Reserve’s last response to inflation was quite painful, not just for equity investors, but also for those in fixed income. The difference today is that the Fed is operating from a stronger position, with restrictive policy already in place, giving it more flexibility as new data comes in.

We’re at a critical inflection point. Everyone’s watching inflation, GDP, and the strength of the labor force. There are industries that are also beginning to show signs of weakness. The trauma of the recent inflation spike is still fresh, and that makes clients more vigilant.

How are you advising clients on their portfolios, given everything happening in the markets?

It always comes back to our process. One advantage we have as a firm is that we don’t serve hundreds of thousands of clients. We work with a select group of highly successful families, which allows us to provide very personalized guidance.

When a new client joins us, we go through an in-depth investment policy interview. We conduct a forensic analysis of their financial situation, assess all existing holdings, and review their estate plan. We also have detailed conversations about their concerns, their goals — not just for themselves, but for their children, their philanthropy, and any large one-off investments like a vacation home or starting a new business.

This process gives us the information we need to design a portfolio that can endure a full market cycle, including changes in the political landscape and tax law. While we adjust at the margins in response to changing conditions, our foundation remains built around long-term planning. That preparation enables us to stay proactive rather than reactive, which is exactly what our clients need and expect.

Investing is incredibly emotional, even for professionals like me. I’ve been doing this for nearly 20 years, and it’s still easier to advise others than to manage my own money. The related stress and anxiety are real.

That’s why it’s so important to find a trusted advisor — someone who can guide you through market uncertainty, offer objective advice, and show empathy for your concerns. Even if you’re a seasoned investor, having someone else make decisions from a dispassionate perspective is crucial for long-term success.

Is there anything you’re keeping a close eye on that could impact your clients in the years ahead?

One of the big things we’re watching is the recent tax bill. Everyone in the industry is still parsing through it, trying to identify both opportunities and potential risks for clients. Some provisions won’t take effect for a few more years, so we’re working closely with our tax and wealth planning teams to ensure we’re thinking ahead.

What’s written in the policy is one thing, but the actual effects will unfold over time. We’ll need to remain proactive and adaptable as the full impact becomes clear.

Are there any emerging trends you’re seeing in philanthropy?

Among the families we work with, philanthropy is approached in a few ways. Some make direct gifts to nonprofits. Others use donor-advised funds to invest and make grants over time. Larger families often create private foundations, especially if they want to build a philanthropic legacy that spans generations.

In the past, many of these foundations were relatively simple, focused on grant-making based on the original wealth creator’s interests. But now, as the next generation becomes involved, I’m seeing a shift toward more formal governance. Families are creating mission and vision statements, establishing charters, and bringing the next generation into leadership roles, either as trustees or board members.

This helps unify the family around shared values and creates a sustainable framework for giving. It’s been inspiring to watch families come together in this way and make a lasting impact.

How are you leveraging technology, and what role do you see it playing in the future of your field?

We try to embrace technology in a pragmatic way that emphasizes security and client safety. There are a lot of promising tools out there — AI chatbots, predictive analytics, and so on — but before we implement anything, our technology and risk management teams do a full evaluation.

Our clients trust us with highly sensitive information, and protecting that data is our highest priority. We absolutely see the potential of artificial intelligence to make our work more efficient and free us from repetitive tasks. That allows us to focus more on the nuanced, human aspects of advising.

AI is here to stay. It’s going to be as transformative as the internet was a few decades ago. I’m cautiously optimistic. We’re excited about the possibilities, but we always put security first.

What are your top priorities and goals for the firm over the next three to five years?

Pathstone is one of the largest independent wealth managers in the United States, with over $150 billion in assets under management and administration. That’s a big number, but relative to the larger financial landscape, compared to big banks and wirehouses, we’re still a small player.

Our goal is to build broader brand recognition and become a household name among wealthy families and entrepreneurs. We’re growing fast and bringing on clients who resonate with our values and approach. We’ve recently expanded our presence in key markets like New York and San Francisco, thanks to a merger with a firm we greatly admired.

Although we’ve seen great success over the past few years, I truly believe we’re just getting started. There’s a vast opportunity ahead, and we’re focused on expanding our reach and continuing to serve clients at the highest level.