My Mission: To help you break the shackles of Wall Street by giving you the truth, so you keep your hard-earned money, invest it successfully for the long-term and achieve financial independence.
Invest Your Money to Achieve Long-Term Financial Security
- Helping you achieve your financial goals is our most important job. Once we understand your needs, risk tolerance and time horizon, a personalized portfolio is crafted for you.
- We will keep you up to date on your portfolio. You will hear from us regularly because consistent communication is important to help you remain com fortable with your investment strategy.
- For your additional comfort and security, accounts are held at well-known, secure institutions specializing in asset custody and your money is accessi ble to you at any time.
- Your fees are based on the value of your assets managed ranging from 0.8% to 2.5% annually. We don't earn commissions on trades. We are a fee only firm with no conflicting royalties. This transparent fee structure aligns our interests with yours. When you do well, we do well.
- Hold ourselves to the highest standards of ethical behavior. We have a fiduciary responsibility to you and nobody else.
- You will be in total control of your investment strategy, our role is simply to help and guide you.
- We will be upfront about investments, risks, costs and potential rewards.
- Manage investments with prudence, a long-term perspective and never forget that it is your money, your dreams, your future.
- Stick with the investment strategy through thick and thin so your investments grow free of taxes and costs, enable you to sleep well and accom plish your dreams.
- Always do the right thing. Entrusting us with your future is a huge responsibility and it is one we take to heart.
You are the right client for us if:
- You are tired of being exploited and not getting results.
- You are feeling neglected by your current advisor.
- You do not want to be talked down to or confused by investment jargon.
- You want to be listened to and your questions answered.
- You want to clearly understand your investment strategy.
- You want to avoid Wall Street hype and prefer to follow the principles of the legendary investors.
The Master Investor
- Believes his first priority is always preservation of capital, which is the cornerstone of his investment strategy.
- Knows he cannot predict the market's next turn.
- Believes that capital preservation + consistency = big gains.
- Has an investment philosophy, follows it, and has an objective.
- Buys only companies he understands, holds them forever and goes contrary to the crowd.
- Pays cash for securities so he never has to sell to meet a margin call.
- Buys more when the market goes on sale.
- Does not believe in diversification, always buys as much as he can of an investment that meets his criteria.
- Hates to pay taxes and other transaction costs. Arranges his affairs to legally minimize his tax bill.
- Refuses to make investments that do not meet his criteria. Says no to everything else.
- Is continually searching for new investment opportunities that meet his criteria and actually engages in his own research. Likely to listen only to other investors or analysts whom he has profound reasons to respect.
- Has the patience when he can't find an investment that meets his criteria to wait indefinitely until he finds one that does.
- Holds a winning investment until a predetermined reason to exit arises.
- Is aware of his own mistakes and corrects them the moment they become evident. As a result, rarely suffers more than small losses.
- Always treats mistakes as learning experiences.
- His returns increase with experience, eventually spending less time to make more money.
- Is not interested or concerned with what others think about his investment decisions.
- Knows how, when and whom to delegate to.
- Lives far below his means.
- Invests for stimulation and self-fulfillment, not just for money. Enjoys the thrill and the process along the way.
- Is not emotionally involved with what he owns, can walk away from any individual investment.
- Lives and breathes investing twenty-four hours a day.
- Puts his money where his mouth is.
The Losing Investor
- Has only one investment goal: "To make a lot of money." As a result, often fails to keep it.
- Believes he has to predict market's next move to make big returns.
- Believes big profits can only be made by taking big risks.
- Has no investment philosophy, no plan of action, and no objective.
- Buys anything that is hot on a tip and follows the herd mentality.
- Buys on margin which amplifies his losses when things go down.
- Sells when the market drops.
- Lacks the confidence to take a huge position on any one investment.
- Overlooks or neglects the burden that taxes and transaction costs have on long-term investment performance.
- Has no criteria, or adopts someone else's. Cannot say no to his own greed.
- Is looking for the thousand-to-one shot that will put him on easy street. As a result, often follows the "hot tip of the month." Always listening to anyone labeled as an expert. Rarely makes a deep study of any investment before buying. His research consists of getting the latest "hot" tip from a broker, an advisor or yesterday's newspaper.
- Feels that he has to be doing something in the market at all times.
- Rarely has a predetermined rule for taking profits. Often scared that a small profit will turn into a loss, cashes it in, and regularly misses giant gains.
- Hangs on to losing investments in the hope that he will break even. As a result, often suffers huge losses.
- Never stays with any one approach long enough to learn how to improve it. Always looks for an "instant fix."
- Rarely learns from experience and tends to repeat the same mistakes until he is cleaned out.
- Is always talking about his current investments "testing" his decisions against others' opinions rather than against reality.
- Selects investment advisors and managers the same way he makes investment decisions.
- Probably lives beyond his means.
- Is motivated by money, thinks that a quick profit is the way to easy riches.
- Falls in love with his investments.
- Is not fully dedicated to achieving his investment goals (even if he knows what they are)
- Adds little to his net worth through investments, very often his investment activities are hazardous to his wealth. Funds his investments (and makes up his losses) from somewhere else.
Our Investment Philosophy
Buy wonderful businesses at fair prices, hold them forever, take advantage of market sell-offs, minimize taxes/transactions costs and let the magic of compounding do its thing.
My favorite investing quotes
"Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria."
~Sir John Templeton
"Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little."
~Fred Schwed Jr
"The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do. For the investor, a too high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments."
"Long ago, Ben Graham taught me that 'Price is what you pay; value is what you get.' Whether we're talking about socks or stocks, I like buying quality merchandist when it is marked down."
"Inflation is when you pay fifteen dollars for the ten dollar haircut you used to get for five dollars when you had hair."
"An investment operation is one which upon thorough analysis promises safety of principal and a satisfactory return."
Formula For Success & A Good Night Sleep
Your capital at work
"Rule number one. Never lose money. Rule number two. Never forget rule number one."
~ Warren Buffet
Own outstanding businesses
"A great business at a fair price is superior to a fair business at a great price."
~ Charlie Munger
Hold them forever
"If the job has been correctly done when a stock is purchased, the time to sell it is - almost never."
~ Phil Fisher
Buy market sell-offs
"If you are really a long-term investor, you will view a bear market as an opportunity to make money."
~ John Templeton
Minimize taxes and transaction costs
"What is the difference between a taxidermist and a tax collector?A taxidermist takes only your skin."
~ Mark Twain
Power of compounding
"Compound interest is the eighth wonder of the world. He who understands it earns it. He who doesn't, pays it."
Financial planning is simple It comes down to these points:
- Budget your expenses and spend less than you earn.
- Have a Financial Plan and stick with it.
- Let the power of compounding do wonders for you.
- Stay disciplined and control your emotions.
- Contribute to Tax-Advantaged Retirement Accounts.
- Have enough insurance to protect your assets.
- Plan for taxes and have an estate plan.
Simple Millionaire Retirement A Roth IRA illustration returning a modest 7.5% annually
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