Our approach is different... and it works.
Many other financial advisors simply choose a money manager and put their clients' money with them.
Our way is different. We hand pick the stocks we hold. The stocks may be blue chips or up-and-comers. Maybe they're tech holdings or big pharma. Whatever the selection, each stock must meet our stringent—and specific—performance criteria for sustained growth.
For over three decades, we've been selecting stocks that have performed well for our portfolios. We know because we invest personally in the same holdings we invest in for our clients. A common interest in these equities ensures our accountability to our clients.
Larry says it best...
Our investment strategy features a primarily fundamental bottoms up approach to equity selection. There is not just one strategy that provides the best investment returns throughout all of the stages of an investment cycle. It is our experience that heeding traditional measures of value, most often, provides the level of consistency that we strive to attain in our investment portfolios.
We seek valuation metrics that offer stability during down market cycles by demonstrating strength in several key areas—on the balance sheet, experience and quality of upper level management, positive existing revenues and profitability, along with the likelihood of some opportunity for growth of the existing earnings. It is rare for us to have investments in companies where revenues and earnings are positioned only for future periods. Could there be instances where either a promising technology or medical breakthrough is visible enough to us that we would make an investment in an emerging company or industry? Yes, but it will tend to be the exception, as our experience is chasing exclusively future profitability which entails a level of risk not consistent with our value-based strategy.
Our approach to fixed income investments is similar: fundamentally-based. Balance sheet strength and bond duration tend to be our primary determinants in selecting individual bonds, preferred stocks, and convertibles. Our preference is for shorter maturities in our bond holdings as it is our experience that longer dated maturities generally provide less flexibility in the management of the overall portfolio.
Perhaps most important in our management of investment portfolios is our belief that our clients are best served when we have had the opportunity to discuss their individual portfolios with them. All of our accounts are managed individually—with attention being paid to each client’s income needs, age, and other sources of income or assets. Our most successful long-term relationships are based on our ongoing discussions of the particular client’s asset allocation and income needs as well as discussions regarding the existing level of domestic interest rates, and whether the equity markets are relatively inexpensive or not. The greater communication we have with our clients, the greater the likelihood that both they—and we—can react calmly during down market periods.