As an independent firm, our investment approach is not restricted by unnecessary parameters. On behalf of our clients, we are able to own varying amounts of equities, fixed income, and cash equivalents at any time. We can invest in smaller market capitalization stocks as well as large companies, and can invest in virtually any industry or segment of the market deemed attractive. The selection of investments is premised on the client’s objectives, risk tolerance, and income needs.
We work with clients structuring portfolios in both the equity and fixed income markets, taking an investment approach - not speculative trading. As a result, turnover and transaction costs are extremely low. Our goal is to provide a high level of service and professionalism with each client, where frequent communication between our clients and us is welcomed and encouraged.
The foundation of our equity approach is based on the principles of value investing set forth originally by Benjamin Graham and implemented by others such as Warren Buffet. Avoiding the momentum of the herd, we invest in good companies that have fallen out of favor with Wall Street and the public. Ideally, when enthusiasm returns and the investment becomes overvalued, we will be able to capitalize on our gains. CORDA looks for companies paying an attractive and sustainable dividend that have a history of increasing the dividend as earnings grow. We are not attempting to determine short-term price fluctuations but are instead looking for long-term value. We believe that patience will be rewarded.
Safety of Returns
One driving principle is that we seek safety of returns first and foremost, as the word "speculation" is not found in Corda's dictionary. Benjamin Graham once said: "An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are deemed speculative."
Another legendary investor we follow is none other than Omaha, Nebraska's, Warren Buffett.
"Ben Graham, my friend and teacher, long ago described the mental attitude toward market fluctuations that I believe to be most conducive to investment success. He said that you should imagine market quotations as coming from a remarkable accommodating fellow named Mr. Market who is your partner in private business. Without fail, Mr. Market appears daily and names a price at which he will either buy your interest or sell you his.
Even though the business that the two of you own may have economic characteristics that are stable, Mr. Market’s quotations will be anything but. For, sad to say, the poor fellow has incurable emotional problems. At times he feels euphoric and can see only the favorable factors affecting the business. When in that mood, he names a very high buy-sell price because he fears that you will snap up his interest and rob him of imminent gains. At other times he is depressed and can see nothing but trouble ahead for both the business and the world. On these occasions he will name a very low price, since he is terrified that you will unload your interest on him.
Mr. Market has another endearing characteristic: He doesn’t mind being ignored. If his quotation is uninteresting to you today, he will be back with a new one tomorrow. Transactions are strictly at your option. Under these conditions, the more manic-depressive his behavior, the better for you. But, like Cinderella at the ball, you must heed one warning or everything will turn into pumpkins and mice: Mr. Market is there to serve you, not to guide you. It is his pocketbook, not his wisdom, that you will find useful. If he shows up someday in a particularly foolish mood, you are free to either ignore him or take advantage of him, but it will be disastrous if you fall under his influence. Indeed, if you aren’t certain that you understand and can value your business far better than Mr. Market, you don’t belong in the game. As they say in poker, ’If you’ve been in the game 30 minutes and you don’t know who the patsy is, you’re the patsy.’ ”
-- Warren Buffett