Wealth Management and Wealth Planning in Macon Georgia

Patton Albertson & Miller

Our Approach to Investment Management

 Our approach to investment management is straightforward. We believe the value of a company is based upon its ability to produce future cash flow. We select stocks using discounted cash flow analysis based upon normalized free cash flow from audited financial statements. The result of those calculations is the current value of the company or, as we call it, "the intrinsic value."

However, buying companies (stocks) at the full intrinsic value still subjects the portfolio to undo risk. Therefore, we look to buy companies at 20% to 30% discounts off their "intrinsic value." This provides a "margin of safety" that reduces portfolio risk. Our bias is towards preserving the wealth you have created rather than aggressively creating wealth by taking undo risk.

Although the financial analysis is important, our stock selection analysis considers other factors as well:

  • Is it a good business?
  • Does it have competent management?
  • What is the company worth to an informed buyer?
  • What is the range of reasonable value?
  • What is the discount from intrinsic value?
  • Does the current price offer sufficient return?
  • What is the downside risk?
  • What are the possible catalysts for value recognition?
  • When might those catalysts occur?
  • What is the current sentiment toward the stock?
  • Is there significant insider trading?

Through a conservative, value style investment strategy we help clients meet their investment goals and avoid the capital impairment associated with improper investment strategies.