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There are many approaches to investing, most of them valid in their own context. At Peachtree Investment Partners, our approach is selecting stocks and bonds to use in building and managing custom portfolios for individuals and families. In choosing those investments, we begin by recognizing that there are many market factors that neither we nor any other financial firm can control.
These include, for example:
- Global economic changes
- Geopolitical unrest
- Natural disasters
- Political events
- Interest rates and currency manipulation
- Regulatory changes
Because these factors are beyond our control, we focus instead on what we can control:
- What we buy
- What we sell
- When we buy
- When we sell
We believe that well-run and stable companies are best positioned to weather market storms caused by factors we cannot control. We strive to build portfolios around those companies and then monitor them to ensure that they continue to perform as expected. Then we manage your portfolio to meet your specific needs, including growth and tax considerations.
Specifically, we look at:
First, dividends provide you with an ongoing income stream, regardless of the price fluctuations of the stock itself. And reinvesting those dividends can make a significant impact on your overall return. In fact, since 1929, reinvested dividends have made up about half of the market’s total returns.
Dividends also can help ease the financial and psychological impact of market ups and downs. There are basically two ways to make money in the stock market: capital appreciation and dividends. But only dividends are certain, and that can make them a potent antidote to volatility.
Finally, we believe that committing to dividend payment often makes company management more transparent and more accountable to shareholders.
Not every stock we recommend for a portfolio pays dividends. However, stocks that do not pay dividends need to show the potential for truly exceptional growth.
Of course, it is not enough to choose good companies. It is also important to use the stocks of those companies to create diverse portfolios and to manage those portfolios in a way that maximizes the strengths of those stocks. In doing these things, we consider:
We also diversify across asset sectors, although we can increase our allocation to a specific sector if we believe market conditions warrant it. We also keep from 0 to 25% of your holdings in cash, depending on our assessment of market conditions.
However, we do not use mutual funds to create portfolios with hundreds of different holdings. We believe that you can realize the best performance with a portfolio that has a reasonable number of high-quality holdings.
We also monitor stocks that we believe are underperforming, to determine whether that underperformance is more likely due to outside pressures, such as issues in the sector or problems in the market overall, or due to fundamental problems within the company.
In monitoring stocks, and in choosing stocks in the first place, we rely heavily – but not exclusively – on Value Line. Value Line research gives in-depth, regularly updated data on about 1,700 of the stocks most-actively traded on U.S. exchanges; these stocks are in more than 90 industry sectors and represent about 95% of total U.S. stock market capitalization.
Longer-term investing makes you less susceptible to day-to-day market fluctuations. It gives your portfolio more time to recover from market ups and downs, and thus it allows you to take a more cautious attitude toward risk.
Having said that, however, we understand that every investor has a variety of goals, including long-term goals and short-term needs. We can structure your portfolio to maximize the chances that you will achieve both types of goals.
Although our portfolios tend to be weighted toward stocks, we also include:
Contact Us
- 6001 Florida Highway A1A
P.O. Box #8181
Indian River Shores, FL 32963
PHONE
- (404) 226-2728
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