FAQ
Frequently Asked Questions
We believe, unlike most popular perceptions, that the majority of investors are not particularly unique. At a minimum they all want reasonable returns, do not want us taking undue risks with their capital, and want a transparent reporting system so they can understand what they own and why. We believe by employing basic and sound investment principles we can well meet the needs of our clients.
We have found that high-grade bonds provide little current return and will go down in value when interest rates rise or specific problems occur. We prefer to own high-grade stocks that pay dividends and have a much greater likelihood for appreciation. In our view, and statistical data bear this out, bonds offer only minimal opportunity for long-term performance and still carry risk. In truth they offer diversification in name only.
We strive to find solid ideas for clients. Definitions of “growth” and “value” are not very useful. In reality every investment should fit both criteria. We tend to avoid enterprises that do not offer both present value and future growth prospects. We have found that what constitutes growth and value are shifting dynamics, which limit the scope of our investment flexibility.
Yes. Our basic minimum is $100,000. But, if a client is genuinely interested in building his/her investment portfolio we can start with a lesser amount and rely on the client to continue funding their portfolio. Our view is that it’s not where one starts but where one finishes.
Our investment portfolio turnover is quite low. We like to hold stocks for at least three-to-five years. If they continue to increase in earnings and dividends we will hold them longer, forever in some cases. Our rationale is that if it is a good business enterprise, why sell? We will sell when we can trade into a better relative idea for companies in a given industry.
No. We believe that employing short-term strategies such as hedging or options doesn’t work in managing long-term assets. Tactical trading may work in the short run but our clients are long-term investors.
No. Unlike an enterprise, a futures contract on a commodity has no internal rate of return. In our opinion it is by definition a speculation, not an investment.
No. We feel our clients’ portfolios are their personalized “direct drive” investment vehicles so we do not use pre-fabricated products. The assets we need to configure a high-grade customized investment portfolio are all listed on the New York Stock Exchange (NYSE) or the National Association of Securities Dealers Automated Quotation (NASDAQ). Using third-party products would defeat the purpose of a customized approach to building our client investment portfolios. Offering pre-fabricated products is akin to inviting someone to your house for dinner and serving them a “TV dinner” (pre-packaged meal).
No. Our perspective is that if you build and protect your net worth everything else shrinks to insignificance. We emphasize to clients, “build your net worth and your net worth will take care of you.” Our role is to construct portfolios of securities that will accomplish the objective of growing a client’s capital and income.
Yes. We charge a 1.5% management fee for customized investment portfolio management on a fiduciary basis. Separate investment accounts such as we provide are not a one-size fits all proposition.
There are no hidden layers of expense and what we do charge is tax deductible when paid from outside the client investment account. Indexes, which are much cheaper, are derivative products and are quite different from direct asset management.
In money management setting the price and grade of service are the operative questions. Clients can set the price of either one but they cannot set both.
No. We do not sell anything.
No. We can conduct business with clients throughout the United States.
We will meet as frequently as the client wishes. We find that perfunctory quarterly meetings (with many investment firms this is usually a ruse to sell something) are often non-productive. We prefer to respond to client needs and meet ad hoc or whenever necessary.
Our experience has been that appropriate decision making and prompt service are what clients expect. We encourage our clients to be as involved in that process as much as they choose. However, most people have hired DeCamilla Capital because they want a reliable entity in charge of making their investments and protecting their capital. Clients receive monthly statements from the custodian, on-demand quarterly reports, and complete online access to their account through the custodian of record.
