Value Investing The Right Way: Four Keys To Buying a Stock

For the past twenty years, we have been perfecting the science of picking stocks. Since the early days of our firm, our methodology has improved dramatically and continues to do so every year. Like every investor, when we first started in this industry we searched and searched for the one “system” that would produce the results we were looking for. The easier this system, the better for us and our clients. In our attempt to find a single system, we learned one thing: there is no easy, simple, or ultimate system. In fact, we learned that the work that needed to be done to analyze a stock was long and exhausting . . . but well worth it. What we have deduced, however, is that there are four keys every stock investment should have. We did not invent these four things. They are core principles that investors, including Warren Buffett,
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Categories: Markets and Strategy.

The Next Apocalypse: Or What The Media Wants You to Believe

This month’s market commentary video is chalk full of fun topics at the top of everyone’s mind. Like: After this bull run is the market cheap or expensive? Should I invest now or hold back? How do I deal with the (next) apocalypse the media is touting? As always we have an Iron Gate perspective that I believe you’ll appreciate. Enjoy the video. What We’re Reading You’re not as good an Investor as you think you are: In celebration of the Bull Market’s 8th birthday, one of our favorite writers, Jason Zweig, discusses how psychology can wreak havoc on investors as they try to go at it alone. The Downfall of the Popular IPO: With Snapchat going public this week, we’ve heard a TON about IPOs. In fact, I was on the ski lift and the ski instructor started talking about Snap’s IPO! Uh oh! Here’s a great article by
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Categories: Market Commentary, Markets, and Strategy.

Buffett’s Hedge Fund Bet: How Iron Gate Compares

Every spring, Warren Buffett releases his annual letter to shareholders. The wisdom that Warren Buffett gives, and the simple way he gives it, has made his annual letter one of the most widely read documents dealing with investing and the markets. At Iron Gate Global, it’s certainly one of our favorite annual letters, and this year was no exception. Proper capital allocation, the good and the bad about companies buying back shares, how great America as a country is, and the importance of low-fees were among the several topics Buffett discussed this year. However, one topic that stood out to me was his update to the big Buffett bet. In Buffett’s own words, he describes the bet: In Berkshire’s 2005 annual report, I argued that active investment management by professionals – in aggregate – would over a period of years underperform the returns achieved by rank amateurs who simply sat
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Categories: Markets and Strategy.

Market Commentary: Inaugural Year Lessons and What You Should Be Doing

It’s once again time for our monthly Market Commentary and I am discussing three things that anyone with any money invested anywhere should be considering. They are: Lessons learned from the transition of Presidential power as it affects the markets; The way to approach hitting the eighth year of a bull market; and What to expect this year along with the “must dos” for any investor right now I know there are all kinds of expectations for the market in the coming year. We hope you’ll approach this year as any: with deliberate, probability-based decision making that removes emotion and optimizes your potential. What We’re Reading Buffett Bought $12 Billion of Stock From Election Through Friday. We LOVE this story. It’s the perfect example of not letting politics get in the way of sound investing. We discuss this more in the market commentary video. What a great example for us
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Categories: Market Commentary, Markets, and Strategy.

A Simple Portfolio Strategy for the Trump Presidency

Over the last few weeks, and seemingly every time I look at the news, I see articles that are trying to forecast whether President Trump will be good or bad for the stock market. Here are a few examples: “The Trump Factor: Should Investors be Bullish or Bearish?” (Marketwatch) “With Donald Trump as President, Here’s What Will Happen to the U.S. Economy” (The Street) “How Donald Trump’s Presidency Will Affect the Stock Market” (Forbes) And, my personal favorite, the potential development of “Trump ETFs” being discussed at this week’s Inside ETF conference. If I’m being completely honest, here’s how I feel: I can’t take this nonsense anymore! And that’s putting it lightly. Nobody can be certain what is going to happen to the stock market, and this early on, these types of forecasts are a waste of time. Their purpose is to generate clicks, not to spread information. That said,
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Categories: Markets and Strategy.

Lack of Liquidity Can Be An Opportunity: A Look At Private Markets

Please join us for our webcast overview of Private Markets and how they might fit in your portfolio. For the last several years, I’ve been studying the world’s ultra-wealthy. I’ve studied not only their habits, but also their investments. Where do they invest? What do they invest in? How do they decide what is a good investment and what is not? Risk, returns—the whole enchilada. The one thing that I have found is that most of their investments are non-liquid, and are heavily concentrated in private investments. Before I go on, you must understand two things: 1) liquidity and 2) private investments. 1) Liquidity – This is the ability to easily sell your investment and receive cash for it. The faster you’re able to sell and receive cash, the more liquid the investment. 2) Private Investment – This is any investment that isn’t publicly traded on an exchange. Think about
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Categories: Strategy.

What Can You Learn From the Rearview Mirror of 2016?

We’re coming to the end of another wild year. In January, the markets recorded the worst start to any year in history . . . and now we’re floating towards DOW 20,000. Just a crazy roller coaster ride! Regardless of how the year goes, whether the markets are up substantially or down, an important exercise that every money manager should go through is a self-evaluation. This includes asking yourself the questions, what did I do well? What mistakes did I make? What would I do different? Were my mistakes emotional or something else? Jason Zweig of the Wall Street Journal said the following regarding self-evaluation. Evaluating yourself honestly is at least as important as evaluating your investments accurately. If you don’t force yourself to learn your limits as an investor, then it doesn’t matter how much you learn about the markets: Your emotions will be your undoing. This whole idea
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Categories: Personal Finance and Strategy.

Myth Busting: Stop Losses are a great tool for investors

One of the best phrases in the market today is a “stop loss.” Think about that . . . who wouldn’t want to stop losing? No one! However, I will tell you from experience, the only thing a stop loss does is stops you from making money! In fact, I’ve talked with several people in the last week that have experienced the very things I discuss in this email. It’s got me so fired up, it deserves to be this week’s content. Let’s start with the basics . . . For those unaware, a stop loss is an order that you can enter with a brokerage saying that you would like to sell a stock (or option) at a certain price. For example, let’s say that you just bought XYZ stock. You’re really excited about the investment BUT you definitely don’t want to lose money after you buy it (who
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Categories: Personal Finance and Strategy.

Presidential Election Results: A Quick Guide for Investors

This week has seen one of the most surprising US Presidential election results in history. What a ride it was! For me, this has meant mass texts, calls, emails and more from clients and associates wanting to grasp what it means for their portfolios and how to react. Today’s video is meant as a guide to how we believe the disciplined investor will act in light of a President-Elect Trump. Enjoy. What We’re Reading Jamie Dimon just sent this memo to his staff about Donald Trump’s victory: One of our favorite CEOs, Jamie Dimon of JP Morgan, sent out a letter to his employees after the election results. The whole idea of working hard, listening to our clients, and realizing the kind of country that we live in, that is stuff that we completely agree with. Good work Mr. Dimon! Master’s in Business Podcast interview with Bill Miller: This podcast
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Categories: Markets and Strategy.

Simplicty In Investing, The Foundation of the Iron Gate Philosophy

I am often asked how we have managed to have the performance in our All-Cap Value portfolio that we have had over the last 15 years. People want a “secret sauce” or a “hack” of some sort that gives us some kind of unseen power. Really, our process has been very transparent and easy to understand. I wanted to share with you a video from my partner Brian Hunsaker that walks you through exactly what we do. You’ll see that it’s not complicated or magical at all. Sticking to this process with discipline and not straying from it has been the key to our success. Enjoy the video. What We’re Reading Brett Pattison on CNBC – yes this is a bit of a fun one. Remember last week’s topic regarding advisor fees? Well an article I recently wrote was featured on CNBC just this week. It covers much of what
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Categories: Markets and Strategy.