Our Investing Philosophy
We seek to grow and protect your wealth by expertly managing your portfolio through various market conditions and cycles. Growing wealth is as much about avoiding large losses as it is about achieving large gains.
Our Investing Process
Creating wealth over the long term is as much about avoiding large losses as it is about achieving large gains. We have a five step process that helps us eliminate as much risk from investing as reasonably possible while still growing our clients assets.
1 | Good Price
Price is everything! The greatest business in the world can be a terrible investment at the wrong price. On the other hand, a temporarily struggling company can be a great investment at the right price.
We look for companies that have temporarily stumbled, but have the pieces in place to recover and thrive.
2 | Strong Balance Sheet
A balance sheet can tell us if a company has strong assets, excess cash, or little debt. If those things are in place, it means they likely have time to fix whatever problems are driving down their stock price.
It also means that there is a good chance that much of the business risk, along with the market risk, has been taken out of the equation.
3 | A Unique Product
If all we did was buy cheap companies with good balance sheets, we would run the risk of falling into what's known as the “value trap”- owning companies that are outdated or no longer needed.
We focus on companies that sell products/services that are essential necessities of life and not easily duplicated.
4 | No Hidden Problems
We cross-check any opportunities we have uncovered with stock market activity. We compare the price of the stock over time with the amount of buyer or seller induced trades that have been made in that stock.
If we see numerous large investors selling the stock and the stock price has remained relatively flat, this may suggest there are hidden problems that have not yet been reflected in the stock price.
5 | Positioned For The Future
We pay careful attention to the big picture - after all the macroeconomic forces driving change in our world. What major challenges will we face in the years to come?
Recognizing these potential future challenges allows us to position our clients for success by owning the companies that provide solutions.