At Beam Capital Management, our investment approach is based on 4 fundamental principles:
→ Search for Value: We emphasize value when analyzing a potential investment, seeking to identify securities trading below their intrinsic worth. We are bargain hunters when it comes to selecting investments for our clients. We believe that through fundamental analysis we can select investments that are attractively priced. When looking for stocks, we will invest in established businesses with proven products and management teams. We will buy these stocks when we believe that their stock price is below what we believe these businesses are worth. Instead of investing in the latest hi flying stocks, we will often invest in stocks that are out of favor and ignored by others. When looking for bonds, we will emphasize rigorous credit analysis with a bias towards companies with high, as well as improving, credit ratings.
→ Manage Risk: Besides attractive valuations, we believe that effective risk management is essential for any portfolio construction. Although it is impossible to avoid risk entirely, it is very important to make our clients aware of investment risk and to tailor a portfolio to their unique level of acceptable risk. We will minimize risk by owning different asset classes and holding individual investments in a variety of diverse sectors and industries. Constant monitoring is essential to successful risk management.
→ Invest for the Long-Term: In selecting investments we always look for the long rather than the short term. We believe that it is almost impossible to consistently predict where stock or bond prices are headed in the short term. Trading in and out of stocks will generate tax liabilities as well as increased trading costs that will reduce investment returns for our clients. We will sell a stock when our price target is reached or when fundamentals deteriorate.
→ Be Tax conscious: When constructing portfolios or effecting transactions in a taxable portfolio we always keep in mind the potential tax consequences of our actions. Whether its matching capital gains with capital losses or selecting to invest in a particular asset class over another, we always aim to maximize the after tax return to our clients.