Here, at Preston Stanley, we see our role as enabling investors to acquire a tangible interest in a growing world economy by building well-diversified portfolios. The case for buying stocks rests largely with viewing them as a long term investment.
Unlike cash or bonds, they have no fixed nominal value and their price volatility renders them unsuitable for covering liabilities of a short term nature. Nevertheless, they do generate a rising income and, because of this, are ideal assets for long term savings or investment, where the primary risk is in the form of inflation.
We are strong believers in what is still a promising future for hard assets/commodities. The growing importance of the emerging economies notwithstanding, we believe that the excesses of the last financial boom/bust cycle, far from being neutralized and defused, still exist.
The threats are still with us but have been transformed from synthetic debt instruments on banking giants' balance sheets into huge debt burdens on the taxpayer bases of the world's biggest economies. While no one can accurately predict the future, it is important to plan for any and all eventualities.
Although we do not limit ourselves to any particular methodology, it would be accurate to say that we tend to focus on value of which there is still an abundance if one knows where to look.
We look at tried and tested traditional measures of gauging value as yield, price to book ratios and simple, old-fashioned cash flow when deciding upon which stocks to acquire. We aim to invest in companies that grow their dividends in the belief that solid, steady income generation supports capital values.
Contact us today to learn more about how our financial management services can help you to realize your financial aspirations.