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DIVERSIFICATION
- Wierenga Asset Management, Inc. believes that diversification is the most significant component to a sound long term investment portfolio.
- Our general practice is to allocate a client's portfolio into a balance of equities, fixed income and cash based on their time horizons, risk tolerances and income needs.
- Generally, our discretionary allocations do not to allocate more that 20% of clients assets into one industry (e.g., Food, Oil & Gas, Banking), and invest not more than 5% into one company, (e.g., Kellogg's, Exxon Mobil, Wells Fargo).
- Although these practices are suitable for many of our clients, we realize that each client is unique and requires personalized asset management. Below you will find several of the considerations that take place as we invest and manage our client's assets.
LONG-TERM INVESTMENT HORIZON
- Longer-term earnings estimates are a more accurate indicator of true corporate worth.
FOCUS ON LEADERS AND EMERGING LEADERS
- The highest quality companies tend to have the best stock market performance over time.
- We will evaluate those industries that are leading the economy forward and those companies that are leaders in their respective industries.
- We also pay close attention to those industries or companies poised to become leaders and are alert for signs that a current leader may be losing its grasp on the top position.
SUPERIOR FORECASTS OF LONG-TERM EARNINGS AND VALUATION
- We go to great lengths to utilize rigorous research methods that avoid common analytical mistakes and focus our research staff's attention on the key variables affecting future earnings potential.
BALANCE DISCIPLINE AND FLEXIBILITY
- Properly balancing the two is more art than science and only years of experience allows any investment manager to come close to achieving the proper balance at any given time.
SEARCH GLOBALLY
- Searching the world for the best companies will ultimately provide more profitable opportunities than relegating one's portfolio to a singular country or region.
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