investment tactics

Writing the Book on Investing

© Can Stock Photo / alexskopje

In the 21st century, it is possible to be more open about every aspect of business than ever before. Digital communications enable us to describe in real time what we are doing, why, how, and for whom with a level of detail that was not possible in the last century.

We have always had a well-defined investment process. We know what we want to own, and why. Since 2015 we have been able to share insights about our views, thinking, philosophies, strategies, and tactics here on the blog at 228Main.com. Those of you who are regular readers have perhaps gained a good sense of what we are about.

It is time to take it to the next level. We are working to comprehensively document our investment management process, from philosophy to research sources to investment selection methods to portfolio structure to tailoring client fit to trading protocols to client and account review process. We will be writing a book.

As great thinker Morgan Housel wrote, “writing crystallizes ideas in ways thinking by itself will never accomplish.” So we expect to come out of this exercise with a tighter, better-defined set of processes and protocols. No guarantees, of course.

This will take time and effort. What are the other advantages in doing it?

• To provide even greater clarity for you.
• To gain a comprehensive business operating manual.
• To help new associates understand what the enterprise is about.

Bottom line, this is a step toward greater sustainability, one of our major objectives for the years ahead. Clients, if you would like to talk about this or anything else, please email us or call.

Broadening Our Horizons

© Can Stock Photo Inc. / phototrekker

For many years, we have specialized in total return investing. If the fruit crop is enough to live on, we haven’t needed to care what the neighbor would pay for the orchard. We have promoted the idea that living with volatility is rewarding. The concept seemed right for the times, since the prevailing low interest rates offer little return on fixed investments.

This traditional core approach hasn’t been right for everyone. Some lack the confidence that we will overcome our challenges, persevere, and continue to grow and thrive. Others just can’t tolerate the ups and downs of long term investing. While our approach is not right for everyone, some of the alternatives are not good either. Consequently, we have come to the realization that we can do a better job for you and others if we offer a range of options.

One client on the verge of retirement has a more pessimistic view of the future than we do. He concluded he ought to put half of his wealth in capital preservation strategies that are likely to hold the money together in case of disaster. And he also concluded that the growth potential of our core approach could be an important hedge against rising cost of living in the years ahead. So he ended up with a 50/50 split based on the idea that he might be right, or we might be right—and the best course was some of each instead of all of one or all of the other.

A retired couple has been comfortable with our approach, but felt that 20% in more stable strategies would offer some preservation against unexpected major health problems.

Others understand and like our traditional approach, and have no desire to change a thing. The key is, each person may make their own decision about the tradeoff between stability and growth.

So we will be bringing our values and principles to a wider range of options. We’ll be at home with a range of viewpoints and investment objectives. On the capital preservation side, we will bring our research strengths to attempt to avoid the major sources of risk and to find opportunity where we can.

That old “buy low, sell high” thing continues to influence our thinking. We won’t be interested in helping people sell out at the wrong time by getting more conservative at low points. Nor will we want to see people getting enthusiastic and more aggressive at market high points. The new structure of offerings is intended to help people find the portfolio they can live with in all market conditions—and be able to do that in our shop if they choose.

As always, if you have questions or concerns or would like an expanded discussion about your circumstances, please email or call.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.