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Our Strategy
We are a
top-down,
value-oriented, investment firm that adheres to two core
beliefs:
1. Do not lose money.
2. Make us much money as you can after following
Rule #1.
Corporate
retirement plans come in all shapes and sizes. The
key to successful investing in these plans is to have an
idea where the markets are heading and adjust
accordingly. Sometimes your choices are extremely
limited and sitting in cash is the best answer.
Corporate retirement
plans usually consist of stocks, bonds, and cash as
investment funds with the bulk of the choices in stock
funds. Our role as
advisors to your 401K/403B accounts is to have you
properly invested at the right times so that you can
take advantage of the markets when they are selling at a
discount. Our decisions are based on our 40+ year old
proprietary models that rely on both fundamental and
technical research.
While we can't
guarantee that we will never have a down year, we are
confident that our professional insight will give you an advantage
over a "do-it-yourself" or a "water cooler investing"
approach. Please feel free to view our corporate
website
for an in
depth explanation of our investment process.
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Prepare Yourself
For the last
100 years in the stock market, investors have averaged a return of nearly 11% --
5.5% from growth and 5.5% from dividends.
However, if
you look at this
chart you will see that there were several periods that stocks went down or
sideways for several years. In fact, the chart below from Century
Managements "Value Investor 2004 Newsletter" shows the 1964 -1982 "sideways"
movement of the Dow Jones Industrial Average.
What should be noticed, however, is that a buy
and hold investor made virtually nothing for the entire 17 years. While
there were seven individual periods to make substantial profits by buying within
the "Value Zone".
That was 20 years ago...it couldn't
happen to me? Oh really? Look at the chart
of the DJIA from 2000 - 2005 below. For five years the buy and hold investor has
made virtually nothing while those that timed their entry and exits correctly
could have made substantial returns. That is where we come in.
Bottom Line
If you have a hundred years to wait, buy and
hold may be a decent strategy. However, most of us really only have at
most 20 years to invest and most current 401K holders who have a substantial
portion of their savings in their 401k/403b have much less time.
It is very hard to make it up in
the later innings.
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