Value-oriented investment strategy and process
Our primary focus when looking for ideas to invest is valuation. History shows that valuation is a critical determinant of performance over the long term.
Our Investment Process
1
Discovery
Stock screens, financial publications, Investing blogs, webinars, meetings
4
Monitor
Company news, listen to earning calls, monitor valuation, continue research
2
Research
Select top ideas, Research annual reports, SEC filings, Industry analysis
5
Sell
Intrinsic value is exceeded, detioriating fundamentals, more attractive alternatives, mergers, acquisitions, advisor error.
3
Implementation
Portfolio construction, 20-35 securities, risk management
6
Reporting
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FAQs
How many securities do you hold in portfolios?
Typical portfolios hold 25-35 securities. Owning more than 35 securities provides little additional diversification.
Who holds my money and securities?
Charles Schwab acts as custodian. We have limited power of attorney to transact on behalf of clients.
How are you compensated?
Clients are charged a simple percentage of assets under management quarterly. As a result, we are incentivized to keep costs low for clients. It's in our best interest to maximize the value of client portfolios creating an alignment of interests.
Are You a Fiduciary?
Yes. We have a legal obligation to act in our clients' best interests.
How will investment decisions be made?
We employ a value oriented investment strategy. We look for good companies that are mispriced for one reason or another. Most investments are domestic however if valuations become more attractive on foreign securities, we will invest abroad as well. We prefer small companies over large all else equal however valuation will ultimately dictate where we end up investing.
What is the minimum required investment?
The minimum to invest is $100,000.