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Sanco Services
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Contrary to popular belief and
media propaganda, investing is not a competitive event. Rather, it
is a uniquely personal and. goal directed activity that individuals must organize and control for
themselves. By definition, it
is a long term enterprise best dealt with by using the fundamental
principles of two disciplines: Investment and Management.
So as much as you love to hear quarterly growth numbers and
comparisons with this or that average and index over short term
blinks of the investment eye, you will not be accommodated here. As
explained in The Brainwashing of the American Investor,
analysis of quarterly, and other calendar year numbers, accomplishes
little while generating transactions that most often damage the
health and long term viability of the investment portfolio.
Performance statistics need to be apples-to-apples
comparisons and no index alive will ever look like a properly
diversified portfolio of investment grade quality,
income generating, NYSE
equities combined with an equally well diversified group of
investment grade income securities. In other words, if you you
plan your Investment Program properly by creating an Asset
Allocation Model that makes sense for you, and fill it up with investment
grade Securities, there is just nothing to compare with
save your own personal goals! Whoa, that's the way it's supposed to
be! |
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Buy
the New & Revised 2nd Edition direct from the Publisher
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to MORE INFO:
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Here's something to think about:
In spite of what the averages and indices told you to believe about
the investment climate from 2000 into 2005, it is my opinion that
there was no reason to lose money. Speculations bombed, as they
always do eventually, but quality investments... well if you did
manage to lose, you simply need to reexamine your approach to
investing. The
"NO" magic formula: No NASDAQ, No Mutual
Funds, No IPOs = No Problem!
Similarly, there are
three major realities in the
Investment World that need to be understood before valid performance
evaluation is possible.
-
The Stock Market Cycle
(peak to trough to peak
or vice versa) has no relationship at all to a calendar year,
-
The Interest Rate Cycle
(low to high to low) has
no relationship either to the calendar year or (believe it or
not) to the Stock
Market Cycle, and
-
The Economic and Business
Cycles have no relationship to the calendar year either.
Don't discount these
simplistic observations. Their meaning, when appreciated, can
improve your future performance significantly. Like golf, investing
can be easy (if not simple). A complicated swing is as non-productive as
gimmicky investment products, and a nine-hole fixation on score in the short run causes mistakes just as surely as
quarterly bottom-line performance analysis.
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Sanco
Services Disclosure Information
Value Stock
Watch List Program Intro
Investment
Performance
Social
Security Reform
The
Fair Tax (NEW)
Commissions
are no Big Deal... Period
| So what is an investor to do if he
isn't going to just follow the crowd (i.e., by ignoring all of the
blatant inconsistencies between the basics of goal orientated
Investment Management and the ridiculousness of the performance
evaluation by the averages, quarterly and annual statistical fiasco)?
The book to your left, and up a tick, Chapter Seven, introduces and explains
The Working Capital Model and how it makes
Investment Portfolio
Perfomance Evaluation personal. Your equities are dealt with as
capital gains producers; your fixed income securities as income
generators; and your Working Capital is supposed to go up every
year... yes, if you are doing
your investing properly, your Working Capital and your Base Income will almost absolutely grow every
year.
But you do need to understand the concepts and the terminology, so
read the book.
Sanco Services, Inc. manages diversified
equity and income portfolios,
invested in high quality, investment grade, dividend paying, New
York Stock Exchange (NYSE) companies. Sanco Services
is one of the very few Investment Managers anywhere that uses
The Working Capital Model, and we focus on things that the average investor seems to
have lost sight of.
|
|
Steve's
Radio Appearances. |
So
when and if I do look at market value performance,
it will almost never be for a conventional period of
time...especially if market value is all we have to
deal with. In the late 90's,
when the Pied Piper of greed was leading investor
dollars into the Black Hole of the NASDAQ, many of the most conservative investors succumbed to the pressure,
leaving their high quality portfolios behind as they joined
the high tech gold rush. I have looked at market value
performance figures for a group of people who stood their High
Quality (no NASDAQ, no Mutual Funds, No IPOs) ground from November of
1999 (about four months before the bubble burst) through
September of 2004... considered a total disaster area by Wall Street and the
Mutual
Fund Industry. Take a look at how your experience would have
improved with the "NO" MAGIC Formula mentioned
above. (No, you won't find the numbers here,
can't do it.) |
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What's
Inside the Brainwashing Book
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A
Millionaire's Secret Investment Strategy
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Before there was performance evaluation,
there were expectations; and before there
can be valid expectations, there must be a basic understanding
of securities. The stock market
is, and always will be a volatile place where even the best and
most profitable companies can be expected to rise and to fall in
market value. Similarly, income securities will always
rise and fall in price as interest rate change expectations...
change. The factors that affect these normal and
harmless fluctuations are many and mostly unpredictable, so the
investment task is to understand this and to work within it.
For, as much as we may try, we just can't change
Mother Nature... yeah, she's everywhere. I've
written books and countless articles on this concept, and it would be hard to
synopsize here. But work on the
understanding of how Equity and Fixed Income market prices react
to certain events in finance and in the economy. Then, create a
portfolio that you can see through. What? (You
can see and name individual securities. Mutual funds are
securities containers that you can't open up to have a look at.)
Then learn how to create a cost based asset allocation, and
you'll be close to understanding how important it is to identify
valid expectations. Now you're ready to use The
Working Capital Model
for performance evaluation.
Learn how to use it and the job is done.
I've heard a rumor that
adapting your financial swing to the Working Capital Model will
actually improve the other (more important?) one... probably
just a rumor.
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The
Stock Market - - - A Challenge for Professionals |
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Wall
Street Transcript and Charleston Regional
Business Journal Interviews with Manager Steve Selengut |
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Portfolio
Content Analysis
Operational
Questions & Answers
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More
Book Reviews
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