Investing 2018-11-01T14:53:01+00:00


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.

Investment Process

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.

Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.  In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Options carry a high level of risk and are not suitable for all investors. With long options, investors may lose 100% of funds invested. Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received. Please read the options disclosure document titled Characteristics and Risks of Standardized Options before considering any option transaction. Suitability for clients to specific services or products may depend upon the individual’s investment objectives, risk tolerance, time horizon and liquidity needs.  Certain services may not be suitable for all investors.  When considering a certain service or product, investors are encouraged to inquire about all respective fees, expenses, limitations or restrictions.