Our investment philosophy

"A rising income stream creates wealth over the long term."

Our collective experience has enabled us to learn from multiple market cycles. Based on this experience, it is our opinion that the most effective way to manage wealth is through one simple statement:  "A rising income stream creates wealth over the long term."

We develop customized client portfolios using patience, discipline, and a long-term approach.  We manage each client portfolio on a discretionary basis.  Our client portfolios don't chase returns by investing in assets that are the current trends; instead, we invest in assets typically depressed by a nearsighted marketplace.  Our aggregate asset mix is currently balanced among high-quality equities, investment grade bonds, and cash reserves.

We implement our investment philosophy by employing value investing - a strategy of selecting securities that trade for less than their intrinsic value.  Value investing is an investment strategy first advocated by Ben Graham and David Dodd and later popularized by their greatest disciple, Warren Buffett. We embrace the ageless tenets of value investing, which include the following:

  • Insist on a margin of safety
  • Focus on buying quality businesses with high returns on capital and track a record of returning capital to investors
  • Be patient and take a contrarian view to the wisdom of the “herd,” especially that of the media
  • View risk as a permanent loss of capital, not just a number
  • Be leery of leverage
  • Avoid investments that we do not understand or that lack transparency