Portfolio Management

Concentrated Equity Portfolios

We prefer to manage individual equity accounts with a modest number of securities, with typically no more than ten equity securities in a portfolio. We believe owning a smaller number of businesses with excellent characteristics that we feel we know and understand is preferable to owning a large number of likely lesser businesses with which we are necessarily less intimate. We believe there is value in this approach, if one exercises good judgment and has an appropriate timeframe.

In selecting equity investments for portfolios, we look for businesses we can understand, with excellent economics and favorable long-term prospects, which are operated by honest and competent people. A good business is not always a good purchase, but it’s a good place to look for one. A fair purchase price is an essential ingredient in any investment. In looking for attractive opportunities, it pays to be active, interested, and open-minded but it does not pay to be in a hurry. Equity selection for portfolios can take time, depending on market conditions. We price rather than time our equity selections.

Diversified Indexed Portfolios

For clients who prefer a more diversified portfolio, we offer managed no-load index funds, which are an economic, tax-efficient form of a diversified equity investment. Our decision to choose indexing (passive) over actively-managed equity mutual funds reflects the fact that: 1) most actively-managed equity mutual funds under-perform their respective indexes over time, 2) actively managed funds have substantially higher management fees and expenses and are tax inefficient and 3) we have had little overall success in selecting actively managed funds using historical performance data.

Fixed Income

We manage taxable and tax free fixed-income portfolios. We look for value relative to U.S. Treasury securities and within the yield curve. Portfolio duration is determined by client need and market conditions. We have an institutional bias against selling money for durations exceeding ten years.

Client Portfolios may be a combination of individual equity selections, index fund selections, and fixed income selections.

Our minimum account size is $500,000. Our asset management services are offered on a fee only basis.