Richard C. Young & Co., Ltd. is a Naples, FL and Newport, RI based financial advisory firm. We have been ranked by Barron’s as one of the top independent financial advisors in the nation for the last eight consecutive years. We manage portfolios for individuals, families, and small businesses throughout the United States.
Last month I wrote to you about the deleterious effects of the central-bank liquidity bubble on deep-value opportunities. Deep value stocks aren’t the only casualty of excess central-bank liquidity, though. There is a more ominous problem brewing in markets. Global central banks’ hair-trigger approach to providing monetary stimulus at every hint of market turmoil has institutionalized the idea that volatility will not be tolerated.
Many of our long-time clients may recall the name Longleaf. For those who do not, Longleaf is a family of mutual funds managed by Southeastern Asset Management. Southeastern is a boutique value manager. When mutual funds played a bigger role in our investment programs, we invested in the Longleaf funds for clients.
We have shied away from purchasing the stock. At Richard C. Young & Co., Ltd., we focus on purchasing what we believe to be great businesses. But buying a great business is not our only focus. We also seek to buy companies at reasonable prices. When investors ignore value, the results can be ugly.
My dad has written for decades that the two most important words in investing are compound interest. Over time, the power of compounding is profound. One of Dad’s oldest friends in the investment business, Dave Hammer, recently relayed a story about the power of compounding that I would like to share with you.
The Wall Street Journal recently profiled the former CEO of the Cato Institute, John A. Allison, who was rumored to be a candidate for Treasury Secretary in the Trump Administration. Who better to help the new administration reinvigorate free-market capitalism in America than the former head of America’s leading free-market think tank?
NAPLES, FL
5150 Tamiami Trail North, Suite 400
Naples, FL 34103
Phone: (888) 456-5444 Fax: (239) 213-0770
NEWPORT, RI
98 William Street
Newport, RI 02840
Phone: (800) 843-7273 Fax: (401) 849-0002
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