Private Investment Management
You may be able to achieve Capital Appreciation by investing primarily in common stocks of historically sound companies that have demonstrated consistent earnings growth. I recommend that investors hold these companies as long as they continue to meet ongoing operating criteria and they maintain a commitment to a long-term view of each company in relationship to long-range economic expectations.
This investment philosophy is based on the premise that the stock market allows alert investors potential opportunities to buy companies with long-term earnings potential at prices that I believe fail to reflect this potential. These opportunities usually occur when investors are concerned with near-term earnings performance of the company.
Because it is not possible to accurately predict turning points in market or economic cycles for any sustained period, this philosophy concentrates on companies whose annual earnings performance historically has been relatively unaffected by the economy. These companies generally manufacture products or offer services independent of the economy or they have been able to minimize its impact on their earnings and cash flows through diversification of products and services.
Portfolios are developed to meet the investor’s specific risk tolerance and investment constraints while taking into consideration his or her long-range expectations. Core portfolio holdings are comprised of companies that have demonstrated and I believe will continue to demonstrate an ability to generate cash flow, earnings and dividend growth rates at better than the S&P 500. Fundamental analysis and strict financial criteria are used to select and monitor core holdings. Turnover is usually very low for this portion of the portfolio.
Bond issues by corporations, the U.S. Treasury, states and municipalities are used according to investor requirements to potentially improve stability and increase cash flow. When conditions warrant bonds may be used in an effort to help improve portfolio total return.
Communication with clients is ongoing and frequent. In addition to monthly statements, clients receive a personalized, comprehensive quarterly performance evaluation. The evaluation reviews asset allocation and highlights current and past account performance in light of stated guidelines, constraints, and objectives, calculates net cash flows as well as gains and losses, and supplies relevant benchmarks against which the client may further measure performance. In addition, the quarterly evaluation graphs the account’s risk level and value since inception.
Life is really simple, but we insist on making it complicated. - Confucius
*Past performance is not indicative of future results, and there is no assurance that any investment strategy will be successful. As each Private Investment Management (PIM) program account is individually managed, construction and ongoing management of portfolios may vary from those discussed in the Philosophy Statement. Investments and investment strategies contained herein are provided for informational purposes only. We would need to review your individual situation before recommending appropriate strategies for you. All investing involves risk, including the possible loss of principal. Each asset class has its own risk and return characteristics. The level of risk associated with a particular investment or asset class generally correlates with the level of return the investment or asset might achieve. Stock values may fluctuate in response to general economic and market conditions, the prospects of individual companies, and industry sectors. Bonds are subject to market, interest rate, price, credit/default, call, liquidity, inflation and other risks. Prices tend to be inversely affected by changes in interest rates. The PIM program is not designed for excessively traded or inactive accounts and are not appropriate for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company. CAR – 0921-03274