Active versus Passive:

As active investors, we seek higher returns for our clients by attempting to identify superior investment opportunities. Passive investors do not even try to beat the market, but instead use index funds which track the broad market. We believe we can do better. Review our track record and decide for yourself.

Stocks versus Bonds:

Stocks and bonds each have their place in a diversified portfolio. Yet over the long run, returns on stocks are nearly double those of bonds. While stocks are more volatile than bonds in the short run, stock returns are less volatile than bond returns in the long run. Many investors underestimate the damage that inflation can wreak upon bond returns.

Value versus Growth:

We favor value investing, a form of defensive investing. We look for companies with substantial assets which provide a margin of safety in the event that the company's business does not perform as expected. We avoid growth stocks which tend to carry lofty valuations. We favor the tried and true over the bold and new.

Fundamental versus Technical Analysis:

We approach buying a share of stock just as we approach buying a business. We use our CPA background to analyze the business fundamentals. We focus on the underlying business and don't try to second guess the actions of other shareholders.

Small Cap versus Large Cap:

The size of a company is not especially important to us. However, the small cap stocks tend to exhibit more of the qualities we seek: modest stock valuations, focused effective management. and a business we can understand. Small caps historically outperform large caps.

Diversification versus Concentration:

We strike a balance between diversification and concentration. generally aiming to hold about twenty separate investments in a portfolio. Twenty is large enough so that there is not too much at risk in any one investment. Twenty is small enough to allow careful watch over each investment.

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