The Graves Financial Advisory Group
To put in concisely: "we buy companies that have best in class management teams, are positioned well in a long-term secular trend, and that pay & grow dividends."
As we execute on our ideas, there are multiple considerations:
Identifying client portfolios, the idea should be suitable for our clients (meaning, they can afford the level of risk associated with the idea).
Next, waiting for the right entry point or “price” of the stock.
Finally, the tax situation of each client is considered individually when placing the investment in their portfolio. We are very mindful of which accounts we own specific investments in which help us add value, justify our fees, and improve our client’s after tax rate of return.
We are aiming for 2-3%, simply from investment income (interest & dividends), then the residual should come from capital appreciation.
Our investment approach is totally our own, based on our own ideas and perceptions. It cannot be replicated. You will know personally, who is making the final decisions to buy or sell. It’s someone who knows you and your unique situation; and understands your investment preferences and goals for your money. You have direct contact with the decision-maker; which you would not receive if you own mutual funds or ETF’s. You have a team who embraces this accountability.
Under this approach, our clients sign an Investment Policy Statement; this document is a contract between Dennis (the portfolio manager) and our clients. The contract contains stated limitations (asset allocation, sector weighting, single security weighting); which govern how we are allowed to manage our client’s money. The contract states that as long as Dennis stays within the outlined parameters in the IPS, he can make changes to their portfolio & holdings without speaking with them first. Given this flexibility, there is an extra level of compliance and reporting because of the discretion. Dennis instantly receives notification from our compliance department if a client’s portfolio falls out of line with the stated restrictions outlined on the IPS, which he must rectify. This is different from traditional investment approaches, where the advisor must call and receive verbal confirmation from every single one of his clients. This can be a very cumbersome process and can result in missed opportunities or lack of consistency of experience for certain clients.