Investment Management

By: Sprung Investment Management Inc.  30-10-2013
Keywords: financial advisor, wealth management, investment advice

How do we choose investments for our clients? We stick to high-quality value stock picks-Canadian and US publicly traded companies whose names you would generally recognize. Value investing preserves wealth by focusing on company fundamentals and carefully scrutinizing the prices paid for securities. Portfolio expenses are minimized through low transaction volumes. This is the same approach embraced by value investors such as Warren Buffet. On behalf of our clients, we seek long-term growth of capital by investing in companies that we believe are 'mispriced.' We do this by identifying companies that are financially strong and well managed. We appraise the intrinsic value of a company by estimating its earnings prospects over the business cycle to establish value. Finally, we utilize a margin of safety to promote return of capital...not just return on capital. Why does our approach work? All too often, investors are distracted by the day-to-day noise of the market. This noise comes in the form of news releases, sell-side analyst reports, quarterly earnings announcements and, more recently, television broadcasts. By focusing on the longer-term, we shut out the day-to-day noise; a skill that is often foreboding for armchair investors. We focus on the earnings power of a company over a business cycle in light of the current macro-economic environment. Then we estimate a value for those earnings that, as an owner, would generate a return sufficient to compensate for the intrinsic risk inherent in the investment. Finally, we access how our valuation with that of the immediate market place and determine whether a sufficient margin of error exists to justify making the investment. All of this is done in the context of the overall portfolio.

Keywords: financial advisor, investment advice, Investment Advisory Service, Investment Bonds, investment management companies, portfolio management, wealth management

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