Our Investment Process
As a client of Joseph Barry Co., LLC, you are advised in accordance with your needs and goals, with resources allocated among equities, fixed income and cash equivalents.
Before considering a client’s investment needs, we begin with a comprehensive financial analysis. This analysis allows us to identify your personal financial goals. In the analysis we address a range of topics including net worth, tax reduction, education funding, retirement and estate planning, and income and asset protection. We also examine investment tax implications, proper titling of assets for estate purposes, and our clients ability to achieve their desired retirement lifestyle. We assess your goals, evaluate your current position and then plan and implement your financial strategy. As part of this process, we also determine your sensitivity to risk. The goal of the portfolio is to meet your long-term financial needs.
Our investment approach is best described as Balanced Global Value. Balanced refers to the combining of equities, fixed income and cash. By Global, we mean that international as well as US securities are included. Value refers to an equity selection technique that follows the traditional Graham and Dodd approach that focuses on quality companies priced favorably relative to earnings and book values.
The mix or asset allocation of a client household portfolio is determined by comparing current market valuations to historical averages. We compare the price earnings (P/E) ratio of the Standard and Poor’s 500 to its historical average (15) for equity exposure. The fixed income segment compares today’s long-term US Treasury rates to its long-term average (4.50%). For example, when broad stock market valuations are high, our recommended exposure is low. Occasionally we will recommend a high allocation to cash. Asset allocations are further influenced by the client’s investment objective: Income with Growth, Growth with Income, or Growth.
To select an investment, we employ a database of 60,000 global companies. Screens are performed using value based parameters such as financial strength, favorable price and book value ratios. A draft list is compiled with advisor bias applied to eliminate companies, industries, or countries with perceived negative factors. Experience from our investing history further refines our buy list. Respected value investor publications are included in our analysis. Client sensitivity to ownership of certain investments is respected. It is the client’s duty to inform us of any significant changes in their investment objective.
Client portfolios are monitored by sophisticated systems that alert us to any material changes to client holdings. Particular attention is paid to any corporate event that weakens the company’s financial position. Changes to price/earning levels determine whether an equity has become overvalued. Quality and valuation changes are the most common reason for sale recommendations. Mutual funds, exchange traded funds, and closed-end funds are suggested for niche investment areas or when appropriate for the account size.
Research Resources used by the Joseph Barry Co., LLC
Capital IQ – a division of Standard and Poor’s
Capital IQ is a leading provider of data and analytics for global financial professionals. Founded in 1999 it now serves over 4,200 client firms, including many of the world’s most successful investment banks, asset management firms, private equity firms, universities and corporations.
Advent for Wealth Management
Advent for wealth management and private client service providers is a fully integrated enterprise software solution designed to meet the specialized investment needs of wealth management institutions.
Conferences attended by members of the Joseph Barry Co., LLC