Disciplined Asset Management
At Kershner, Grosso & Company, we do all of our research internally. We do not buy outside research or rely on the advice of outside partners. Good investment ideas are only found through in-depth, methodical, meticulous research. Only through such company specific and industry specific analysis do we develop a full investment thesis for each common stock we select. Our client portfolios tend to be concentrated in 20 to 30 individual common stock and bond positions. There are so many companies to choose from globally, we make sure we only focused on what our research indicates are the best of the best. We are adamant that relatively concentrated positions are the only way to out perform the market over time. The only thing overly diverse portfolios will return over time is mediocrity.
Our common stock approach is earnings and cash flow driven. We believe that, over time, increasing corporate cash flow and earnings is what drives share prices higher. We focus on companies that predictably and consistently deliver increasing cash flow per share to its shareholders and we are very disciplined as to what multiple we will pay for that cash flow and earnings stream. That strict discipline keeps our clients away from the constant hype and passing fads, neither of which ever end well.
Our fixed income selections tend to focus on quality. The criteria for the selection and duration of fixed income obligations include our macroeconomic analysis and forecasting, sector-specific preferences, liquidity, yield-to-maturity, risk versus reward characteristics and the needs of the client portfolio. Since our focus is on quality, the most important criteria is our forecasted interest rate outlook.
Our own personal money and our family money is invested right along side our clients in the same companies our clients own.