High-quality, long-view investing
Since our founding and through every market cycle, our disciplined long term approach has been critical to ensuring that we meet our clients’ goals. We are long-term investors, believing that serious money is made over time. We customize portfolios to our individual client’s needs, but believe that any investment, whether bought for growth or value, must have the promise of growth in its future.
Our investment process starts with the weekly meetings of our Investment Policy Committee to determine the attractiveness of various asset classes. As “top-down” investors, we start with the big picture to include the direction of the economy, interest rates, and corporate profits. From there we arrive at a consensus as to the amount of capital that should be allocated to fixed income, equities, and short-term liquid investments.
Building an equity portfolio is not a simple process since it must take into consideration the future of particular industries and the companies within them. In all cases, we are looking for a combination of good management, prudent allocation of capital, and the return that capital provides. We believe in diversification, but we will overweight those industries and companies that have a more promising future. While our approach is fundamental, our technical team provides valuable input to our selection process.
In sum, our investment process is continuous and flexible. More importantly, it must meet the goals and standards that our clients deserve. With our depth of expertise and long-term perspective, we work hard to preserve and enhance your wealth. We are here to help you achieve your goals.
Assess economic/market conditions and determine long-term secular growth trends
Identify sectors and industries benefitting from those trends, with a focus on companies which have a large moat or competitive advantage
Evaluate business fundamentals with a focus on the quality of management and effectiveness of capital allocation
Debate merits of the investment thesis with other members of the team to challenge the idea and discuss potential weaknesses
Continually re-evaluate to ensure investment rationale is intact, utilizing technical analysis to manage risk and maximize profits
The majority of our client relationships operate under investment advisory agreements, where assets are managed for a fee based on account value. In addition, certain clients have elected to utilize our firm for custody services and transact on a retail brokerage basis. Wellington Shields also serves a investment advisor to those with outside custody relationships.