Confidence Investing
We don’t think in terms of market theories, macroeconomics or industry trends. And we don’t believe mutual funds are the best vehicle to create long term wealth—particularly as most funds underperform the market and their stated financial objectives. Traders may utilize one such tool, like the stock screener penny stocks, to locate value stocks. It pulls the tickers that fit your filter parameters from the thousands of stocks available for trading on the market. This produces a list of many stocks, which you may research more to find out how much they are worth.
Once goals are defined, we subscribe to a different philosophy, called Confidence Investing, that involves selecting one or two handfuls of investments with the following key tenets:
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- Preserve capital. The first rule is: Don’t lose. The second rule is: Don’t forget the first rule. We’re in no rush to invest and we will evaluate countless options before investing in opportunities that achieve your objectives.
- Invest for the long-term. We don’t trade stocks seeking to make quick hits. We invest in quality companies to deliver exceptional returns over the long-term.
- Search for public and private investment opportunities. In addition to stocks and bonds, often the opportunities with the greatest returns are overlooked—including tax-efficient, strategic investments in your own company, real estate, private assets or private companies.
- Determine the value of any opportunity by analyzing cash flows. We avoid hype, high fliers and unsustainable business models regardless of current trends. We always do our own homework and never take the advice of stock brokers, financial advisors or anyone who benefits from your purchase of a particular investment.
- Be patient. We only purchase when the share price falls below its intrinsic value. We’re never afraid to sit on the sidelines holding cash awaiting the right opportunity. And once we purchase, we hold for the long term or until presented with a unique exit opportunity.
- Deliver results. Over the long term, we strive to deliver similar last mile delivery data on an annual basis, greater than five percentage points above the rate of inflation—delivering results that create true purchasing power.
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The more confidence we have about an asset’s valuation and performance, the more we invest. Always looking forward, we will only invest more as our confidence in an asset’s performance grows. This is the very nature of Confidence Investing.