Accounting financial statements distort economic reality and often cause management and boards to make misguided and short-sighted decisions. Our first step is to recast a company’s financial information so it reflects a firm’s true performance, EVA. We look for companies that do the same. Berk worked for Stern Stewart & Co., The EVA Company, and helped companies implement the EVA financial system. Numerous studies, whether conducted by us or determined independently, show that EVA companies outperform their peers and the market throughout the business cycle, long-term. Monitor Market Risk
Consistently and successfully "timing the market" is impossible for an individual investor- no one consistently calls the market's short-term ups and downs. Successful investors are in the market for the long-term - staying the course with a consistent investment program helps you avoid critical market timing mistakes that hurt many investors.
We use a multi-factor, empirical model that estimates the "RISK of DECLINE" due solely to systematic or macro-economic factors. We do this by measuring:
1. Monetary and financial conditions, like the yield curve, interest rate spreads and money supply changes,
2. Sentiment of investors to see what they are actually doing with their money - too much greed warns us there is some risk ahead; too much despair presents an opportunity to buy - just the opposite of what most investors' emotions compel them to do, 3. Valuation of the market as a whole to see how much margin of safety we have if we are wrong about other indicators, and
4. Market trend which tells us whether we are in a up- or down- trend, cyclical (medium term) or secular (long-term) and helps to spot turning points in market-based and sector-based risk. Diversify
No one wants to lose money. When you diversify you spread your investments across multiple securities to reduce the risk from any one. Diversification may lower your portfolio's risk and can increase your expected returns for any given level of risk you take. That makes it easier for you to invest successfully. Reduce Costs
Everyone knows lowering your costs while maintaining your returns means you'll have more money. What everyone doesn't know is what a difference this makes. Over time, expenses and fees can really make a difference.
We charge a low percentage of assets fee for our advice and management of your account and we have partnered with FOLIOfn so you are not charged any commissions on most trades for a small flat annual fee of $290. NO DOUBLE FEES, NO MARKETING FEES and NO PER TRADE BROKERAGE FEES. Minimize Taxes
What you keep is what you earn. The more you pay in taxes the less you keep. So we always work with you to minimize your taxes. It seems simple but investors frequently underestimate the impact of taxes on investment returns. So they ignore capital gains taxes until they have to pay them.