"An investment operation is one which upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."
- Benjamin Graham, Security Analysis
We think owning hundreds of stocks through mutual funds dilutes the potential returns an investor can achieve and increases the total risk of a portfolio. A number of academic studies show there is no added diversification benefit to owning more than 32 stocks. Granite Value Capital's equity investment process focuses on owning 35 to 45 stocks and knowing each company very well. The firm believes thoroughly understanding a smaller portfolio of companies lowers the risk of losing capital and increases the chances of outperforming the market.
Granite Value Capital's unique equity investment philosophy stems from the principles set forth by Benjamin Graham and Warren Buffett. This philosophy provides the cornerstone of the firm's investment management process.
Granite Value Capital's investment management and financial advisory services are tailored to the individual needs of each client. A lot of attention goes towards determining a client's income needs, liquidity requirements, time horizon, tax issues, return expectations, risk tolerance and understanding outside assets not managed by Granite Value Capital.
Once the client's total financial picture is understood, a customized Investment Policy Statement (IPS) is created. The IPS is a blueprint on how Granite Value Capital will manage the client's assets. It reflects the goals and objectives of the client and the targeted asset allocation. (The percent allocated to bonds and equities.)
Granite Value Capital thinks the percent allocated to bonds (low risk assets) and equities (risky assets) is the most important decision a client faces. However, we think most investment managers and financial advisors fail in managing client portfolios by concentrating too much on asset allocating the equity portion of a client's portfolio.
How Granite Value Capital Manages Money
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Granite Value Capital, LLCPhone: (603) 643-0770 44 South Main Street, 1st Floor Fax: (888) 845-2481