| At Beam Capital Management, our
investment approach is based on 4
fundamental
principles:
→ Search for Value: We emphasize value
when analyzing a potential investment, seeking to identify securities
trading below their intrinsic worth. We are bargain hunters when it
comes to selecting investments for our clients. We believe that through
fundamental analysis we can select investments that are attractively
priced. When looking for stocks, we will invest in established businesses
with proven products and management teams. We will buy these stocks when
we believe that their stock price is below what we believe these
businesses are worth. Instead of investing in the latest hi flying stocks,
we will often invest in stocks that are out of favor and ignored by
others. When looking for bonds, we will emphasize rigorous credit analysis
with a bias towards companies with high, as well as improving, credit
ratings.
→ Manage Risk: Besides attractive valuations, we believe that effective
risk management is essential for any portfolio construction. Although it
is impossible to avoid risk entirely, it is very important to make our
clients aware of investment risk and to tailor a portfolio to their unique
level of acceptable risk. We will minimize risk by owning different asset
classes and holding individual investments in a variety of diverse
sectors and industries. Constant monitoring is essential to successful risk
management.
→ Invest for the Long-Term: In selecting investments we always
look for the long rather than the short term. We believe that it is almost
impossible to consistently predict where stock or bond prices are headed
in the short term. Trading in and out of stocks will generate tax
liabilities as well as increased trading costs that will reduce investment
returns for our clients. We will sell a stock when our price target is
reached or when fundamentals deteriorate.
→ Be Tax conscious: When constructing portfolios or effecting
transactions in a taxable portfolio we always keep in mind the potential tax
consequences of our actions. Whether its matching capital gains with
capital losses or selecting to invest in a particular asset class over
another, we always aim to maximize the after tax return to our clients.
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