Stocks
We seek opportunities for you to build equity stakes in higher-quality companies (both in the U.S. and abroad) that are still growing. These companies may be dynamic small- or mid-cap names or well-established, larger firms with managers who have found innovative ways to stay on top. We prefer to buy stocks when they are trading at what we think are reasonable prices – an approach that often requires discipline, patience, and courage. Where appropriate, we may also use low-cost index funds or exchange-traded funds to give you exposure to stock sectors or markets where we find long-term valuations attractive.
Bonds
Our approach to bond selection hinges on your tax situation and income needs. We tend to buy bonds with an eye to holding them to maturity. Generally, our preference is for investment-grade bonds, including high-grade corporate credits, municipal bonds (both tax-exempt and taxable, as appropriate), U.S. agency issues, and traditional or zero-coupon U.S. Treasury issues. At times, we also make use of Treasury Inflation Protected Securities (“TIPS”) or other inflation-indexed bond instruments, which help to mitigate inflation’s impact. Moreover, we may invest in low-cost bond index vehicles or actively managed bond mutual funds to gain diversification and balance where appropriate.
Alternative Assets
We search for opportunities to invest in asset classes that exhibit low or negative correlations to traditional stocks or bonds, and thus have the potential to enhance your portfolio’s risk-return profile. Such investments may include timber, commodity-related vehicles, real estate, or other alternative assets. We look for investments with reasonable costs and compelling long-term dynamics, and we place an emphasis on publicly marketable securities.