built its investing philosophy
on Benjamin Graham's advice in The
Intelligent Investor. Mr.
Graham was Warren Buffet's professor
at Columbia University, and is
considered the grandfather of value
investing. His philosophy holds
that one should buy companies that
have excellent management, strong
underlying financials, and, for
one reason or another, are currently
ignored by Wall Street.
Most investors
frequently make two key mistakes:
they are too active and they react
to market events. The top investors
identify and buy the best companies
within the most attractive sectors
and make adjustments to a portfolio
only when something fundamental
occurs. Fundamental events would
include strategic or management
changes at the company, or events
that impact the entire sector.
Unfortunately,
the incentives for most money managers
or brokers are not aligned with
their customers: there are either
incentives to trade actively (commissions),
sell proprietary products which
have hidden costs and are not efficient
(e.g. funds, complicated structured
products), or sell stocks of companies
with which their bank has a relationship
(i.e., they are not neutral). Liberty
Hill is an independent fee-only
investment adviser, eschews mutual
funds, and maintains no relationships
that conflict with the interests
of its clients. |
