Our approach to wealth management
We know you have worked hard to build your nest egg, and that it takes years of perseverance, planning and sacrifice to achieve your financial goals. This is true whether you are planning to buy a house or a business, finance your children’s college education, set goals for retirement, or leave a legacy to your family or foundation. That’s why we at NSAM take our responsibility in managing your investments so seriously, and have created a wealth management firm that is geared to helping you achieve your goals.
First, the basics. We need to get to know you and your financial situation. We want to fully understand your current financial picture and life goals as well as both sides of your personal “balance sheet” – your assets and liabilities. This information is important in establishing the correct mix of investments and scaling the proper level of risk that reflects your aims and temperament.
What do we invest in?
We have spent many years as analysts and portfolio managers, examining the fundamentals of individual companies as well as studying the market, market history, and great investors of the past. We focus most of our attention on individual securities, such as stocks, ETFs, REITs and bonds. We also invest in closed-end funds and mutual funds, depending on your circumstances.
We start by screening, searching, and analyzing thousands of companies, looking for the best businesses in which to invest for the long term. Then we “kick the tires,” make inquiries, and do additional fundamental research. We compare companies in similar industries and sectors, trying to find those with the greatest long-term potential.
When we buy stocks, we see ourselves as business owners, not renters. As business owners, we can harness the power of great management teams; innovative products and services with strong barriers to entry; and a company's growing revenue and earnings stream. Unless a client expresses an interest in a specific asset class, we generally will not constrain our investment approach or style. Indeed, our approach is eclectic, informed by financial academic theory, and forged through years of experience of investing in a multitude of market cycles and economic circumstances. We pay close attention to valuations, and find ourselves temperamentally aligned with Bernard Baruch’s old adage and advice of buying straw hats in the wintertime.
We are a bit old fashioned, some call us down-right contrary, but we are not ornery
The world is overloaded with information, and at times appears transfixed by punditry-generated noise, short-term goals and dreams of instantaneous gains. These self-inflicted handicaps contrast with North Shore’s perspective - we take the long view. By taking the long view, we avoid unnecessary transaction costs and avoid being whipsawed by the often bipolar nature of the stock market. With quantitative models and a good dose of experience, we sift through the information and find nuggets of value, which we utilize to your advantage.
Importantly, we believe strong results will follow from proper planning and analysis along with that old-fashioned value, delayed gratification.
The importance of understanding your situation even when you might not
While we are conservative investors, we are not stodgy. We do not need to convene a committee to make an important decision. We will act quickly when necessary, and take full advantage of the liquidity that the capital markets provide. An example:
A client for many years had a dream of buying a spectacular tract of land. In a telephone conversation, he casually mentioned that the land was finally going to become available and he intended to buy it. The advisor told him that he didn’t want to be rude but that he had to get off the phone immediately. Why? Because stocks from the investment advisor’s perspective were at a short-term overvaluation inflection point. The advisor wanted to sell enough shares to ensure that we locked in the best prices; and the client’s dream become a reality.
The above example demonstrates the importance of understanding your financial situation. This means asking many questions and probing so that we know your short, medium and especially long-term goals as if they were our own. We will keep you on track with your financial goals even when you are not focusing on them.
What do George Costanza and Albert Einstein have in common? (when it comes to investing advice)
First, Mr. Einstein. This gentleman revolutionized physics with his general theory of relativity. But he also reportedly stated that compound interest is the greatest invention in human history, and the most powerful force in the universe. So who is to argue with Einstein about forces in the universe? Evidently, most of today's financial media, with its focus on short-term trades, seems to take issue with, or is blithely ignorant of Einstein's epiphany. This short-term focus encourages mindless trading, where the only things that are compounded are confusion and unecessary transaction costs. But if Einstein does not convince you, then perhaps Seinfeld’s George Constanza will. George finally, albeit temporarily, realizes that he can achieve success in dating and life when he behaves in the exact opposite way of his every impulse. (Recall his pickup line: "My name is George. I'm unemployed and I live with my parents.") We feel investors would be better off if they focused on compounding (think Einstein), rather than “hot picks” and short-term trading; and allowed NSAM to harness their inner-contra-George Constanza (who gets the date).
Trust and Judgment
More than anything else when selecting a financial advisor, ask yourself the most important questions –
• Can I trust these people?
• Do they have the judgment and financial acumen to make sound decisions on my behalf for the long term?
• Can I sleep at night knowing that they are looking after my nest egg?
• Are they looking out for me like family?
Where do we go from here?
If you would like to set up a consultation to determine whether North Shore Asset Management is the right firm to protect and grow your wealth, please email us at firstname.lastname@example.org or call us at to set up an appointment.
North Shore Asset Management, LLC, Cold Spring Harbor, NY 11724 - Tel 212-757-7777 - Fax 888-315-5238
Copyright © 2013 North Shore Asset Management, LLC