Methodology
Economic growth and inflation each rise or fall. The result is four discrete climates a portfolio may have to live through. We allocate across assets suited to each — so clients are not betting the farm on a single weather report.
Rows: growth · Columns: inflation
By placing a portfolio among assets tailored to each of the four environments, clients can aim for more consistent performance with less volatility than the broad stock market.
What we own
We focus on businesses that appear to offer the greatest risk/reward, and we buy them when they look attractively priced. The method is old: value investors have been paid for patience and discipline for generations. We simply still practice it.
What we refuse
Index funds and mega-cap names are easy to own and easy to explain. They are not always easy to live with at the prices the crowd will pay. Smaller unique companies — and a measured allocation to precious metals — keep the portfolio honest when fashion and inflation both misbehave.
The work is slow. The correspondence is not.
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