By limiting stock investments to only those S&P 500 companies that have 1) the most attractive profit margins and 2) a long track record of highly predictable cash flows, we set he stage for the best likelihood that future portfolio returns will also be predictable.
Each client’s account is mapped for future cash needs and invested in Treasury bonds that mature when the cash is needed. Only dollars in excess of that need are invested in stocks.
We have recommended that you use Schwab Institutional to custody your account and to execute our orders. We take advantage of the commission-free trading and limit turnover by holding stocks for the long run. Your investment advisory and custodial expenses are spelled out in their respective agreements and while varying with account size, fall between .30% and .50% per year.
