Investing and Wealth Creation

Our Approach to Investing and Wealth Creation

Our approach to investing is remarkably simple. We carefully invest in quality assets and companies only after defining your investing and retirement goals. Also, with gold investing, you can diversify your retirement funds. A well-known distributor of real gold and silver IRAs for retirement accounts is the augusta precious metals company.

We conduct in-depth due diligence to evaluate each investment opportunity targeting returns, over the long term, of five percentage points above inflation.

Our approach, called Confidence Investing, is superior in many ways to traditional mutual fund investing.

Setting the Goal Posts

Developing a Written Investment Policy Statement

Investing must start with a goal and a time horizon. At Furuya & Co., we carefully listen to your spoken and unspoken words to develop a written investment goal. We’ll review this written statement with you to ensure if reflects your desires—making adjustments so it perfectly mirrors your needs. We will also review your approved goals with your professional advisors including lawyers, accountants and family members to help ensure success.

We will then craft your Investment Policy Statement that will assist in effectively supervising, monitoring and evaluating the investments that we are overseeing and/or managing. The purpose is to describe formally how investment decisions are related to your goals and objectives, as well as the strategic vision for investing and creating wealth.

In the Investing Policy Statement, we will develop a long-term, multi-generational plan including metrics and benchmarks to document how we are progressing toward your goal. After you sign the Investment Policy Statement, we take charge of overseeing the implementation keeping you informed at every step--including investment opportunities, monitoring and portfolio management.

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.

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:

- 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, on an annual basis, greater than five percentage points above the rate of inflation—delivering results that create true purchasing power.

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.

Why Confidence Investing Wins

Why Confidence Investing is Superior

Our Confidence Investing approach to investing and building wealth is effective and remarkably simple. It differs from the way most busy professionals invest their hard-earned money—with mutual funds.

The emergence of mutual funds

Mutual funds typically represent a wide collection of stocks and/or bonds that seek to out-perform the “market,” particular industries or meet investing objectives. The underlying power of funds is based upon diversification—meaning that if one stock performs poorly, there are dozens or even hundreds of other assets in the fund that can possibly buoy performance and moderate the loss of the entire fund. Funds can also provide access to fractional shares—enabling even high priced stocks and bonds to be purchased.

What’s wrong with mutual funds?

The downside to funds is that they can be expensive—costing you anywhere between 0.25% and 5.0% of your entire investment per year. And, of course, funds moderate gains, too. The gains of a well-performing stock will quickly be moderated by under-performing assets in the fund. Furthermore, many funds are restricted to investing in public assets—overlooking many outstanding investment opportunities. And, of course, orders to purchase or sell funds are only executed once per day and you cannot control the tax treatment of all profits or losses.

So why are mutual funds so popular?

Funds are popular because they are money machines for the financial institutions (not necessarily the investor) that create, manage, brand and sell them. Funds are also “easy” for investment advisors to sell avoiding the hard work necessary to identify, vet and monitor a hand-selected group of investments.

Confidence Investing

Our goal as a long term investor is to select a limited number of opportunities with healthy balance sheets, sustainable business models and are likely to experience predictable earnings growth for many years. We then actively monitor these investments with a goal of delivering annualized returns five percentage points above the rate of inflation.

With this approach, you can retire sooner and with the same or a more comfortable lifestyle.

Our Approach to Investing and Wealth Creation

Archives

Categories

No Widgets

Furuya & Co.

Archives

Categories

Tags

No Widgets

Furuya & Co.