We recognize that every portfolio we manage represents a client’s specific goals, hopes and dreams.  As such, it is our objective to maximize our clients’ financial security by investing to emphasize both capital appreciation and the preservation of accumulated capital.

To that end, we seek to implement a conservative, value-oriented, approach that is tailored around 4 major principles:

  • Place our clients’ objectives first
  • Assume the least amount of risk in the pursuit of superior results
  • Focus on fundamental analysis
  • Invest in assets where perceived value is greater than the price

Benjamin Graham, father of value investing, observed that, in the short term, market participants frequently react irrationally to both good and bad news.  This type of emotional buying and selling can create discrepancies between the price of an asset and its underlying value.

Therefore, during times of duress or irrational pessimism, it is possible to acquire an asset at a discounted price.  Similarly, it is possible to over-pay for an asset during times of extreme optimism.

Indeed, the price one pays for an investment, whether it is a stock, a bond, real estate, or any other asset, is the single biggest determinant of one’s return on investment.

We believe the principals of value investing are transferable to every asset class.  After all, at its core, investing is simply committing capital to have a claim on some sort of future cash flows regardless of the asset held.  Further, all asset classes experience cycles of extreme pessimism and euphoria.

The fact is there are many different investments competing for one’s dollar at any given time.  Choosing an appropriate investment entails an analysis of its unique risk/reward characteristics in the context of an investor’s individual needs and goals.

While considering a client’s risk tolerance, time horizon, liquidity needs, and tax sensitivity, we seek to identify an appropriate combination of asset classes to best satisfy each client’s objectives.  In order to maximize capital appreciation and capital preservation, portfolios are constructed by purchasing individual securities whenever they can be bought at a reasonable price.