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Art of Low Risk Investing Is Alive and Well

July 13, 2017
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                                                                            WHAT MAKES ME DIFFERENT

I provide what few Investment Advisors can provide through use of a four Prong Strategic Quality, Price, Technical Risk Evaluation of Market and Securities so as to provide protection against downside risk, and Portfolio evaluation using random sampling process: 1) Quality- a fundamental evaluation process focusing on crucial factors developed by Ben Graham, Warren Buffett etc which differentiate managements using consistency factors e.g. free-cashflow and earnings growth vs. competitors profiles; 2) Price - a tracking correlation with valuation using Ben Graham or Peter Lynch comparison of intrinsic and historical valuation parameters unique to each company creating boundary lines pointing to outlier positions calling for action; 3) technical analysis tracking absorbed decades ago from my NYU professors Michael Baum and Michael Zahorchak (See Art of Low Risk Investing by Michael Zahorchak),4) forecasting future expected portfolio account and portfolio expectations using Random Sampling process developed by noted Yale Professors which process is quite useful to evaluate outside portfolios of interested parties.

Whereas most investors are steered toward gaining an understanding of enterprise revenue growth and earnings profiles which are frequently also coupled to an accompanying valuation matrix e.g  price to earnings, few go further and acquire ranking e.g. by market cap in an industry or industry. Some do. I add further outcome evaluations acquired via a random sampling using historical variables. And I  stenuously move on to the next step of tracking the technical pricing profile to provide a the downside layer of protection needed by my risk adverse clients, which technique, by the way, provides me with a yellow light that its time to give notice to clients tending to overreach - to think of protecting what we have acquired (using ongoing analysis made famous by Michael Zahorchak in his 1972 book noted above). Result: An agreed roadmap to watch and track toward goals with notice of undue risk approaching. Satisfied clients? FNRA does not allow public referrals. Want me to take a look at your current portfolio?