EQUITY SELECTION
Thomas Story & Son’s main focus is a bottoms-up approach to equity and investments, which are tailored to each client’s long-term objectives. We eschew from complex, “innovative”, and highly popular products, while concentrating on public companies that will generate a continuous flow of revenue over several years from differentiated products, possess a superior financial strength from high-quality assets, have honest, competent, and enthusiastic management, as well as create an opportunity for a reasonable return over the holding period. As each portfolio is customized depending on the client, our investments can be broken down as follows:
STALWARTS
(>$50B MARKET CAP)
Mature, lower volatility investments that are growing revenues and cash flow higher than the nominal pace of the economy and long-term inflation.
SEEKERS
($1B – $50B MARKET CAP)
Mid-sized businesses that are in the early stages of product or service
development, with growing revenues and cash flow at least 2x the nominal
increases in GDP.
SPECIAL
SITUATIONS
Event-driven investments of three year or less durations. These include fixed income alternatives that possess dividend yields that are greater than the five-year notes, arbitrage opportunities with high confidence of completion mergers, and value convergence.
DIVERSIFICATION
Adequate and effective diversification of investments is important. Excessive
diversification or diversification of investments for its own sake produces either riskier portfolios or mediocre results focused on diversification as opposed to client objectives. Depending on the individual situation, objectives and tolerance for both financial and emotional risk, that 20-30 well diversified investments provides the optimum amount of diversification.
PORTFOLIO CONSTRUCTION
Portfolio construction is based on two variables: the client’s objectives and the
availability of suitable investments at the time of implementation. Utilization of Fidelity or another external custodian provides flexibility to the client's preference.
TURNOVER
We believe that the current (last 40-plus years) towards trading as opposed to investing creates higher “frictional” costs. The average equity mutual fund has a turnover in its investments of 130%. We further believe that despite very low commission rates on Transactions, that other costs are
incurred—bid/asked spreads, administrative fees, and taxes—that raise the expenses of running these
portfolios well above the fee that is charged. Our portfolios’ turnover have consistently run under 20%.
INVESTMENT
MANAGEMENT
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Portfolio Construction & Investment Strategy
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Equity, Mutual Fund & Fixed Income Selection
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Client Account Performance Reporting
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Investment Policy Statement
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Tax Efficiency Strategy
ESTATE &
WEALTH TRANSFER
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In coordination with attorney and external certified public accountant (CPA):
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Wealth Transfer
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Beneficiary Review
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Philanthropic Giving
TAX PLANNING
& OPTIMIZATION
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In coordination with an external certified public accountant (CPA):
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Income Tax Planning
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Tax Return Preparation
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Tax Review
PERSONAL FINANCE
& OPERATIONS
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Bill & Recurring Payments (Loans, Rent, Insurance, Taxes)
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Money Movement & Transfer (Gifts, Wires and Journals)
Fidelity Investments, one of the largest providers of financial services in the nation, coordinates with our firm to offer you the products, services, and investments that can go a long way in helping you meet your goals.
Together, we help identify the products and services that are in the best interest of you, our client. Although we are open to other brokerage alternatives, our preferred connection with Fidelity provides economical and efficient ways for us to better serve you. This ongoing relationship, complemented by Fidelity’s advanced brokerage platform, provides a solid foundation to help you achieve your financial objectives.
Currently, Fidelity has arranged for insurance protection beyond the coverage through the Securities Investor Protection Corporation (SIPC). While your assets are covered by the SIPC up to $500,000, including cash claims limited to $250,000, Fidelity provides supplemental protection that covers your account over and above this SIPC coverage.1