We have structured our business around several core principles as summarized below:
1. Always Act in the Client’s Best Interest.
Our firm is a Registered Investment Advisory Firm. As such, we act in a fiduciary capacity, which requires the investment professional and firm to always act in the client’s best interests. A fiduciary is held to a higher standard of care than a non-fiduciary subject to the suitability standard.
2. Fee Based Compensation Structure.
We are compensated based on a percentage of assets under management rather than by commissions. We do not sell high cost insurance products or mutual funds that pay us upfront commissions or ongoing fees. We believe this structure better aligns our interests with our client’s interests and eliminates the incentive for trade activity or product selection based on payout.
3. Control Costs.
Over time, seemingly minor differences in cost can have a significant impact on asset values. We avoid high cost mutual funds and insurance products, and focus on individual securities and low cost mutual funds in an effort to reduce the costs to the client.
We do our own research and make the investment decisions locally. We do not outsource the investment process and decisions to a third party investment manager. Our clients like the fact that they can talk to the people making the day to day decisions in their portfolio.
5. Keep It Simple.
In our opinion, our industry has made the investment process more complex than it needs to be. We follow a very basic approach to investing that focuses on quality (balance sheet strength), current income (dividend yields), cash flow, and valuation. We take a long term view, do not focus on quarter to quarter performance, and believe in patient investing.
6. We Invest Where You Invest.
We believe in our investment process and invest our own money and family money into our program.