At Altrius, we invest our company’s retirement plan assets side by side our clients owning the same stocks and bonds that our clients do. In addition, I also invest all of my personal savings in the same 35 U.S. stocks, 40 international companies and approximately 100 bonds we own. “Eating what we cook” is one of the many ways we align the interests of our clients with our own interests.
Our firm works at the pleasure of our clients and just as our fee is negatively impacted when your portfolio declines during a market turndown, so too does our retirement savings. That said, we are patient long term investors and don’t make rash decisions when investing by moving in and out of stocks rapidly or changing course simply due to short term news events. I take the same long term approach in managing our business, which I hope to serve in for many decades to come, attempting to make the best decisions for our clients and firm over a long time frame rather than look for a short term gain.
Investing alongside our clients obviously displays our strong belief in our analysis and research. We design our portfolio to be diversified enough to mitigate risk, but concentrated enough to potentially outperform. We are patient investors and view every security we purchase as if were buying a piece of a business — not simply a stock certificate. Many Wall Street analysts focus exclusively on growth. In contrast, we invest in companies with sound cash flow, moderate global growth, discounted valuations and steadily growing dividends which has enabled our clients’ retirement income to grow to fund their retirement goals and keep ahead of inflation.
To manage risk, we utilize scenario analysis (both upside and downside) to construct portfolios and identify the risk/reward associated with securities and their respective asset class. The result is a portfolio of income-generating securities of dividend-paying stocks and higher yielding bonds with sound risk adjusted return potential over longer periods of time. This approach has served our clients well over the past two decades and, though I can’t guarantee future success, we trust it will continue to do so in the many decades to come.
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