INVESTMENT STRATEGY
Expertise, Intuition, & Ingenuity
Due diligence is imperative when selecting investment solutions. But where we add value is through customizing and actively managing your portfolio daily and focusing on what we do best. We believe learning from our past experience gives us a competitive advantage and helps us guide you through volatile investment cycles. Therefore, we shy away from high risk investments and stay inside our circle of expertise since high risk can result in higher volatility and does not necessarily mean higher returns. While many financial advisors focus on rewards first then risk, we try to do the opposite. As Wayne Gretsky said ”You want to skate where the puck is going to be, not where it has been.” We believe this philosophy is key to our success.
At Saleeby & Associates, we continuously research companies all over the world and typically speak to management before we invest. Our philosophy is best stated by Peter Lynch “The person that turns over the most rocks wins the game.” We analyze what the best opportunities to make money for our clients with the least amount of risk. At Saleeby & Associates, we believe the greatest investment opportunities lie where there is a large gap between perception and reality. The bigger the gap, the bigger the opportunity. We then try to capitalize on it. Ultimately it is important to buy a good company at a right price because we know it’s impossible to forecast stock prices or time market fluctuations over the short-term, especially with other impediments such as taxes and fees.
The stock market does not stop for anybody... it is continually evolving and digesting information. Suitable emotional intelligence is key to managing a portfolio but it’s not an easy task. Our experience allows us to look objectively and rationally, not emotionally. Many investors make decisions based on emotions then apply logic to support their decision. When investors react before they think, they can negatively affect their behavior and desired outcome. Instead, they rationalize the investment opportunity without considering their emotions and ultimate risk. We believe our edge over many advisors and firms is our objectivity and deliberation.
Independent Research/Analysis
We leverage and specialize in our own independent research and have access to extensive outside research as well. Ray searches for companies throughout the world that have barriers to entry, understandable businesses, and other competitive advantages whether it be market share, pricing power, etc. His vast knowledge of industries and companies is vital to his success. He tends to buy lower beta (risk) investments and structure portfolios this way which means less volatility and risk. He exhibits patience and considers tax consequences in his decisions and will customize your portfolio to meet your expectations within your risk tolerance.
A financial advisor learns to optimize investment portfolios from experience with various investment cycles and discovering what works and what does not; This is not something a brokerage firm can train you on. It is challenging to find the right balance of investments and risk in a portfolio and we feel many advisors lack the knowledge, experience or skill set necessary to achieve this. You certainly do not want your portfolio managed by someone who is “experimenting” with your assets while you assume all the risk.