We work to build you an enduring portfolio of good companies

We have designed a strategy that addresses the major obstacles to successful wealth building. In a nutshell, our strategy invests opportunistically, for the long term, in small to mid-cap companies which are selling at a substantial discount to their estimated value.  It’s a patient approach that may add one or two new holdings per month - the goal is that after five years you will have accumulated a durable portfolio of 50+ companies that will serve you well for the long-term. If you like the idea of having a smart independent fiduciary asset manager working to help you build wealth strategically, then read on to learn more.

Our investment process

We actively search out and carefully research small to mid-cap companies ($300m - $5 bn market cap ) that are potential long term holdings. Once a company has been identified as a long term desired holding, we determine its fair value based on prudent assumptions and the discount to fair value that would be very attractive for us to establish an ownership position, assuming no deterioration in the fundamentals. Then, we wait for the market to deliver us this price. Often times our target price is never achieved, but maintaining a large inventory of potential investment candidates, there is usually always something that is available to purchase. While certain market conditions are more conducive to bargain hunting, consider that if we are able to add just one good company per month to your portfolio, after five years you will have a portfolio of 60 companies.

Risk management

Maximum allocation to one company is 10% of your portfolio value at the time of purchase.

Recommended minimum investment

$10,000. You will need to open an account with Interactive Brokers and provide us with a limited power of attorney to implement our strategy for you. For more details on opening an account see our FAQ's.

Fees

1% of assets under management (AUM). Interactive Brokers account fee is $10 per month. No setup or cancellation fees.

Why our strategy is a better way to build wealth

Long-term visibility. Since we are taking a long-term approach to building wealth, our focus leans toward stable boring companies with more predictable futures. We don’t focus on the next big trend idea. Our primary consideration is that the company will still be around in 10 years’ time, i.e. they will not be innovated out of existence.

Company size. Our focus is on small to mid-cap stocks where good research is more likely to uncover value opportunities. This is in contrast to the more heavily traveled large-cap sector where the market is more efficient.

Large inventory of pre-vetted ideas. Having a large stable of pre-vetted companies that we wish to own enhances the likelihood that one of them will be on sale. Of course, this is where the real skills come into play. Good research and a solid understanding of how to assess a company’s value and future prospects is critical.

Patience. This is probably the single most important element in investment success, i.e. waiting for the right opportunities. There are no forced allocations. We only put capital to work if there are exceptional opportunities. This is in contrast to being invested in a mutual fund, where for the most part 100% of your capital is always invested regardless of the quality of the opportunities available, and also differs from a dollar-cost averaging program which allocates capital regardless of valuations.

Managed risk. We limit allocations to any one name and don’t overexpose you to any one industry.

Taxes. When we purchase a company, our intention is to hold it for a very long time, so we don’t expect to trigger many taxable gains. This is particularly valuable to you if you have already maxed out your tax-deferred accounts.

Fees. High fees can be a real burden to your portfolio. Our fee is a simple 1% of assets with no performance fee.