The most important investment decision is allocating assets among different asset classes. Once that decision is made, our rigorous fundamental analysis helps us select individual securities for our clients' portfolios. To build investment strategies that meet our clients’ needs, we spend time getting to know them and their investment objectives. We first determine their risk tolerance and initial asset allocation. Then we revisit periodically to continually adjust our strategy to their long-term goals.
We recognize that in the short term, markets are not always rational or efficient, and can be driven by fear and greed. However, we believe that in the long run, markets can provide excellent returns for those who patiently acquire good companies at attractive prices. Because a disciplined investment strategy can build successful long-term investment results in any market environment, our approach is focused on producing competitive long- term returns, controlling risk and preserving wealth.
Buying and Selling Approach
We believe that the key to profitable equity investing is not only the business or stock chosen, but also the price paid for that investment. We focus on buying quality companies that are undervalued or that have superior total return potential. We use traditional valuation metrics in assessing the proper price to pay for a stock such as price/earnings ratio (P/E), return on equity (ROE), earnings growth and dividend growth, among others. Our sell philosophy is based on a number of factors including deteriorating fundamentals, stretched valuation, superior replacement opportunities, and fraud/deceptive accounting or other problems within the corporation.
Tax Advantaged Investing
We invest primarily in individual stocks and bonds, which allows us to control both tax consequences and transaction costs. In addition, we do use low cost, non-proprietary mutual funds and ETFs to achieve exposure to certain asset classes such as international emerging markets, small/mid cap stocks, and to take advantage of certain specialty niches or opportunities.