At RL Paler, LLC, we strive to provide you with consistent, competitive investment profits over time by capitalizing on a variety of financial opportunities. We limit risk to a level with which you're comfortable, avoiding speculative investment choices. We achieve this goal with diversification, disciplined management and sophisticated security selection.
The following philosophies are paramount to our portfolio management strategies:
Equity Investment Philosophy
Quality professional in house research combined with external research ensures unbiased security selection. Out of a universe of thousands of companies typically fewer then 100 companies meet our initial proprietary screening process.
Our selection process involves a bottom-up approach looking at the qualitative and quantitative fundamentals of the company. Our approach allows us to buy the highest quality companies that typically show a long history of reliable earnings growth, excellent management, identifiable monopolies, and are conservatively financed. Once we have identified the companies that we are interested in purchasing, we then put them through extensive analysis to determine the price in which we are willing to pay for the company. We view the purchase of the company’s stock as if we are going to personally buy the entire company, moving only if it makes business sense.
Fixed Income Philosophy
At R.L. Paler Investment Advisors, LLC we view our fixed income analysis with the same enthusiasm. We believe that the maturity and the quality of the bonds we select will drive their performance. Because of this, we tend to stay with intermediate bonds. They typically offer two thirds of the yield that long bonds offer and have on average half the risk. We do not purchase any junk or high-yield bonds. Our fixed income philosophy is to stay with investment grade bonds during our initial selection process and to sell the bond if its credit quality drops below investment grade.
Customized Asset Allocation
Because no two investors acquired their wealth the same way, we do not manage their portfolios the same. Each client's portfolio is customized to meet their risk, growth and income needs. We will analyze your goals and then propose an asset allocation strategy made up of stocks, bonds, and cash to meet your unique circumstances.
We believe the cost to invest is critical in portfolio construction. Portfolios are built to represent the asset classes and markets we target at the least expensive price.
We pay special attention to managing risk in portfolios. We measure volatility and downside risk for individual asset classes and for the overall diversified portfolio. Decisions to add new asset classes are based on how they may impact the overall portfolio’s anticipated return, volatility and downside risk.
Impact of Taxes
We construct portfolios to minimize the impact of taxes. Each account may have differing tax considerations. The location of assets within the different accounts may have different tax considerations, thus affecting your overall expected profits. In addition, we aggressively take tax losses, where appropriate, and consider alternative minimum tax in our investment decision-making. Please see Tax Tips by Richard Paler
Individually Designed Portfolios
We construct a portfolio unique to your individual needs, rather than mold your needs to a pre-formed package. Your tolerance of risk, as well as your need for gains, is carefully considered in our plan. Ongoing management takes into account your specific cash flow and taxation issues.
“Our approach to successful portfolio management is integrated planning, flawless execution and continuous monitoring.”—RL Paler