Steven Ayers and Company

Our Process

Selecting and Managing Investments

Our investment philosophy is guided by the methods and techniques used by the world's most successful investors. We look to own investments that offer a high probability of an attractive return with minimal risk of permanent capital loss. While this description may sound vague, the types of investments that offer these types of characteristics can vary widely based on current market prices and conditions at any given point in time. We use a number of quantitative, value-focused screening techniques to narrow the universe of thousands of stocks, bonds, funds and other instruments down to a short, more manageable list of investment candidates that merit further research. Generally, we are looking for a confluence of favorable factors, including an attractive price with a high potential for appreciation over time; business characteristics that particularly favor the company and/or sector in which we are investing; and a margin of safety that will limit long-term downside if anything goes wrong with our thesis or factors out of our control.

We are agnostic about investment type or location: at various times we have bought and owned U.S. and international stocks, straight and convertible bonds, preferred shares, equipment trust certificates, closed-end mutual funds, real estate investment trusts and other investments for our clients. What interests us most is finding value aligned with the characteristics listed above at a given point in time. We believe this flexible approach of taking what the market offers helps us deliver better long-term results for our clients.

Because we manage accounts individually, the size of a position taken for any single account will be determined by factors specific to the client and the account itself. A client who is already retired and drawing from his account for living expenses will generally have a higher weighting toward income-generating investments than a client who does not expect to need access to their money for the next twenty years, for example. Other factors, including trading and holding costs and individual ability to tolerate market volatility, shape the determination of position sizes in each client account.