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Altrius Capital Blog

19 Mar 2018

Why Do We Purchase Stocks That Decline in Value?

Posted by James Russo

I'm in the only business in which no one wants to purchase something when it is 25% lower in price!

This past week, a client asked the good question of why we would purchase a company such as Mattel which has declined in value and sell or trim our positions in companies which have risen in price - particularly when the company doesn't pay a dividend which is generally at the core of our philosophy and critical to our client's future retirement success. Because this question goes to the core of our investment process, I thought I would share my answer with our friends, clients and investors. My reply email is enclosed as follows:

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Topics: Dividends, stocks

20 Feb 2018

Mano A Mano: Altrius vs. “Legendary Manager” Ken Fisher of Fisher Investments

Posted by James Russo

It is unfortunately difficult in the very noisy financial services sector to tell the difference from a broker working for a large bank, a financial services representative at your local bank, an insurance agent pitching financial advice via annuities or life insurance, online brokerage firms offering advice on a green chair, robo-advisors with model ETF platforms and accounting firms selling mutual funds. Some firms however are fee-only Registered Investment Advisors which provide wealth management services as a fiduciary for a fee without commissions thereby limiting many conflicts of interest.

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Topics: Investing, Long Term Investment

08 Feb 2018

Rise of the Machines – And How to Beat Them

Posted by James Russo

Today's 1000+ point plunge for the Dow Jones Industrial Average can be attributed primarily to algorithmic, programmed trading. In an absence of any particular news during a trading day, the massive selling (or buying) that occurs during the opening or final hour of a trading day illustrates that a good deal of selling is occurring because of broken technical market levels which triggers further selling and a negative feedback loop. In addition, the massive rise of passive investing in indexes - which are laden with overvalued growth stocks unlike the reasonably priced value-based, dividend stocks we own - is major contributor to the recent sell-off as valuations come back down to earth for such overpriced companies.

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Topics: Advice, Financial Advice, Dividends, market fluctuations

05 Feb 2018

"Now Is Always the Hardest Time to Invest"

Posted by James Russo

Today's 2%+ market sell-off has certainly unnerved some investors.  Like any market move in the short-term, it's important to take a deep breath and think about your long term goals as we assess our outlook and strategy.  So, has anything changed?

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Topics: Investing, Dividends, Long Term Investment

03 Jan 2018

Bitcoin: Really?!

Posted by James Russo

After receiving a tip from my Uber driver, a call from my uncle Ed and questions from my kids about Bitcoin, I thought I would pen a few words about the cryptocurrency. It's important to first understand that anyone who bets on Bitcoin, or any other cryptocurrency, is rampantly speculating rather than investing.  There is absolutely no way to fundamentally judge the intrinsic value of Bitcoin as it produces no cash flow nor has any earnings.  As such, it is of course impossible to also make any determination when to buy or sell it.

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Topics: Cryptocurrency, Bitcoin