Blog

Recently, a client asked how often we’ve been recognized as a 4- or 5-star Morningstar performer. While we don’t have an exact count of consecutive quarters or total recognitions over the past three decades, the answer is simple: many, many times. Our consistent performance speaks volumes. Based on rolling returns, our [...]

“The investor’s chief problem—and even his worst enemy—is likely to be himself.” – Benjamin Graham Since President Trump’s April 2nd “Liberation Day” announcement, financial markets have exhibited significant volatility, understandably causing consternation among investors. The initial draft of this post was finished after market close on Tuesday, April 8th, having […]

The current political season indicates a choice between Trump and Biden for the upcoming election. Despite the curiosity surrounding their potential impact on the economy and stock market, we at Altrius believe that the resilient American economy will continue to flourish irrespective of political leadership. The success of prominent international […]

I recently received an email from an old friend and client expressing concerns about our nation’s future and the stability of capitalism.  Negative articles and distressing news on television seem to dominate the narrative, overshadowing the tremendous good happening in our nation and the world. When I find myself pondering […]

When my father passed away almost nineteen years ago, my mother purchased a Rolex watch for my brother and me as a commemoration of his life.  Over a weekend in New York City a month or two ago, I was listening to a financial advisor (he and his partner are […]

Depending on who you speak to the stock market, at times, can be a wonderfully efficient and rational market, or it can be a terribly confusing and irrational landscape filled with gamblers and speculators. While we do not like to cast such definitive judgements on market cycles, we do find […]

Past debt ceiling negotiations in previous years have followed a similar pattern in that the market remains volatile until Congress eventually realizes the importance of paying the bills for the expenses it has already passed into law.  That said, each negotiation is different though this time, both parties have acknowledged […]

We’ve all been there. It was a long day at work, meetings ran later than you expected, and you didn’t have time to go food shopping, let alone find a recipe and cook, so you fire up your trusty app, Door Dash, to have dinner delivered to you. Maybe it […]

Before I officially started at Altrius, I found myself reading a copy of “Invest Like An Aardvark” on a shockingly warm December day. I turned the page to the second chapter and read something that has been stuck in my mind like super glue ever since, “Investors should be buying […]

We are doing a great deal of research regarding the current bank crisis understanding it is imperative we get it right in positioning our clients to weather a potential storm. We of course have been through such tumult before having navigated previous recessions and approximate 50% selloffs of the market […]

Historically, an ounce of gold has equated to the price of a nice men’s suit. Gold, which is approaching $2,000, will today still buy you a quality suit unless you desire a more expensive Italian import or shop for a Canali on eBay like I do, where you can find […]

Two clients have emailed me this weekend questioning whether the Silicon Valley Bank bankruptcy will lead to more bank failures. As capitalism is built on confidence, it is certainly possible that any contagion could spread leading to other bank failures. However, as Silicon Valley Bank operated under specialized conditions lending […]

A client recently asked about our current asset allocation and why we were purchasing high yield bonds versus purchasing a 3-month treasury bill. Of note, we have also begun purchasing some short-term treasury bills taking advantage of higher short-term yields while also positioning for additional bond purchases as the Fed […]

The average investor saw a volatile year packed with false rallies and lower lows. The environment has changed. In his December 13th, 2022 memo to shareholders, Howard Marks regards this as the third “Sea Change” he has experienced. Altrius’ strategy has remained constant for the last 25 years; invest in […]

Benjamin Graham is widely known as “the father of value investing” writing Security Analysis (1934) with David Dodd and The Intelligent Investor (1949) which stressed his investment philosophy of minimal debt, buy-and-hold investing, fundamental analysis, buying within the margin of safety, investor psychology and contrarian mindsets. He is also known […]

Simply put, we don’t buy overvalued stocks…EVER. The time to rotate to value stocks is here. Valuation and strong fundamentals MATTER. This time is not different from previous market cycles. We know this is hard to hear for traditional growth investors because during the past ten to fifteen years simply […]

When I first graduated from the U.S. Naval Academy with a degree in Economics, I never would have thought after 8 years of service, and flying all over the globe, that I would have a successful 25-year career in investment management (and counting). While not immediately apparent, my experiences flying […]

February 19, 2021— Altrius Capital Management has been awarded a PSN Manager of the Decade and Top Guns 6-star distinction by Informa Financial Intelligence’s PSN manager database, North America’s longest running database of investment managers. “Congratulations to Altrius Capital Management for being recognized as a PSN Manager of the Decade […]

A few clients have asked me about the recent stock market volatility in the broader market in general and with a few select stocks in particular which contain a high amount of short interest (such as AMC Entertainment and GameStop). As such, I thought I would share my reply with […]

Clients familiar with our investment philosophy understand and appreciate our income-focused, value-driven approach. Many of you may recognize the first chart below, which highlights this approach since the inception of our flagship Global Income strategy in 2003. The portfolio values of our clients certainly fluctuated over the past two decades […]

A lesson I learned in the Marines, and especially during survival school, is that things usually aren’t as bad as they seem when you are first encountering them and that you must keep moving forward. Persevering when things feel their bleakest is not easy, but it is a lesson we […]

Growth and momentum investment strategies have been driven markedly by FAAT MAN stocks – Facebook, Amazon, Alphabet (Google), Tesla, Microsoft, Apple and Netflix. These companies have experienced exceptional returns in recent years and subsequently carry very high valuations. As of this writing, the tech behemoths have a larger market capitalization […]

Though few believe government shouldn’t be helping its citizens and the economy during this crisis, some of our clients have expressed concerns about our rising national debt. Below is the emailed question and my answer concerning his debt question. Client question: When does our debt get to a point where […]

With the coronavirus spreading panic and a market selloff over the last week, some are wondering how we should position our portfolios in light of a potential epidemic. As is usual under such circumstances, I prefer to take an historical perspective. Though history doesn’t repeat itself, it certainly does rhyme […]

In the final days leading up to Christmas, while most of us have been buying presents, baking cookies, and mentally preparing to spend time with our in-laws, Congress has been busy. The recent passage of the SECURE Act has some major implications for retirement and financial planning. We’ve included some […]

Though I thought long and hard during many periods of my life about a calling to the priesthood, I would never feel comfortable building my business by using religion as a marketing plan. For one, I understand that I am an imperfect man incapable of living up to perfect ideals. […]

Ignore the avalanche of TV commercials touting the money to be made using option strategies. The big money they refer to is for them, not you. There exists an incestuous relationship between the media and the members of the financial industry who buy advertising. Much of the money spent on […]

Investors are continuously bombarded by discount brokerage commercials urging them to trade, trade, trade. They’re exhortations are understandable; getting people to trade is how discount brokers generate income. But what’s good for them is not necessarily good for their investor clients, despite their claims that they can teach people how […]

During his annual shareholder meeting in 2018, Warren Buffett advised investors to put all their money into the Vanguard 500 index. In contrast, “The Big Short” investor Michael Burry recently explained why the wildly popular inflows to index funds are distorting the prices of the stocks they are designed to […]

Turns out Congress can actually agree on something – and it could drastically alter your financial plan Politics today is more polarized than ever, with the left and the right disagreeing on virtually anything. There is one notable exception that seems to always bring both sides together: collecting tax dollars […]

If you’ve been tuned in to financial news over the first half of the year, you’ve undoubtedly heard and read about the stream of initial public offerings (IPOs) hitting the markets over the past few months. From ridesharing behemoths to producers of plant-based meat alternatives, the majority of these share […]

Some weeks ago, I saw my seven-year-old daughter watching “The Lorax,” a movie based on Dr. Seuss’ favorite children’s book. Although the fable is ostensibly used to express Dr. Seuss’ anger at corporate greed, I believe the story displays that greed and care of the environment can coincide with one […]

Over the past decade, I was continually asked by prospective clients at the beginning of every year what they should do with the cash they have been sitting on as they have been too afraid to get back into the market after the financial crisis. Year after year rolled by […]

With a bear market upon us and volatility continuing this New Year, fears are arising that a recession may be at hand. During such times, I believe it important to gain a perspective from past bear markets and recessions as we develop an investment plan going forward. Reacting to 500 […]

Volatility has been on the rise in financial markets this year, and December seems to be unfolding as potentially the worst month of 2018 for stock market volatility. What’s unusual this year is that just about all asset classes are down at this point, which is a reversal of what […]

When an individual’s portfolio has reached a certain numerical value (i.e. $1 million, $2.5 million, $5 million, etc.), he tends to lock-in that valuation in his mind and is unwilling for it to move lower – at times even desiring to move to cash in order to preserve the valuation. If the […]

Though I’ve never used illicit drugs, I do regularly drink caffeine through my coffee habit, consume alcohol via two or three glasses of wine a year, and have ingested nicotine having smoked a handful of cigars over the past couple of decades. As a libertarian on social issues, I won’t […]

We have a very few clients who always call or email when the market sells off asking what we should do and why it is happening. The honest answer of course is that the stock market is declining simply because there are more sellers than buyers when panic sets in […]

We don’t currently own Nike; however, this is not due to some patriotic position for or against the company’s recent ad campaign featuring Colin Kaepernick. Instead, it is based upon an unprejudiced review of Nike’s valuation, financials and its paltry 1% dividend payout. It is often easy to let one’s […]

On more than one occasion in recent years clients have written us about investing in Starbucks, the trendy coffee chain with locations in seemingly every city and town across the United States. Though Starbucks is the coffee shop of choice for some of us at Altrius, we believe that mistaking […]

Charlatans and unethical scam artists don’t come right out and tell you they are attempting to make you part with your money while providing absolutely no value. The most skilled will tell you they are doing something altruistically and that they want to simply teach you what they’ve learned – […]

The past week has continued the recent pattern of extreme volatility this year with major indices again moving into negative territory year-to-date.  Though I will publish the more comprehensive market and economic quarterly newsletter soon, I thought I’d share a portion of the chapter on Media Madness from the book […]

I'm in the only business in which no one wants to purchase something when it is 25% lower in price! This past week, a client asked the good question of why we would purchase a company such as Mattel which has declined in value and sell or trim our positions [...]

It is unfortunately difficult in the very noisy financial services sector to tell the difference from a broker working for a large bank, a financial services representative at your local bank, an insurance agent pitching financial advice via annuities or life insurance, online brokerage firms offering advice on a green […]

Today’s 1000+ point plunge for the Dow Jones Industrial Average can be attributed primarily to algorithmic, programmed trading. In an absence of any particular news during a trading day, the massive selling (or buying) that occurs during the opening or final hour of a trading day illustrates that a good […]

Today’s 2%+ market sell-off has certainly unnerved some investors.  Like any market move in the short-term, it’s important to take a deep breath and think about your long term goals as we assess our outlook and strategy.  So, has anything changed? Especially considering today’s strong jobs report (the initial reason […]

After receiving a tip from my Uber driver, a call from my uncle Ed and questions from my kids about Bitcoin, I thought I would pen a few words about the cryptocurrency. It’s important to first understand that anyone who bets on Bitcoin, or any other cryptocurrency, is rampantly speculating rather […]

For nearly a hundred years, tax cuts have been a centerpiece of political strife among politicians, with both parties at times lobbying for lower tax rates. An accepted belief has been that lower taxes widen the Federal deficit and provide no economic expansion. Contrary to this belief, prior tax cuts […]

Many prospective clients – and some clients who have held cash outside of their managed assets with us – have asked what they should do with money they’ve been holding in cash particularly after the market has exhibited a strong rally.  This is not a new question as I have been […]

Other than the market rallying past some arbitrary round number, I’ll never understand the media’s obsession with passing a particular milestone.  The number itself has no relation to value if not thought about from the context of earnings.  Simply put, the market at any indiscriminate number may be overvalued or […]

The dramatic presidential election result unsurprisingly shocked the world and global financial markets. The initial reaction led to large declines in Asian markets, the Mexican peso and U.S. stock market futures as a Trump victory appeared increasingly likely. However, as we wrote this letter on Wednesday, a broad selloff did not […]

At Altrius, we invest our company’s retirement plan assets side by side our clients owning the same stocks and bonds that our clients do.  In addition, I also invest all of my personal savings in the same 35 U.S. stocks, 40 international companies and approximately 100 bonds we own.  “Eating […]

Over this past weekend, a client sent an article asking if a market crash was coming.  As this end is touted by many pundits and financial prognosticators, I thought I would share my response below. Dear Client: Should I place all honor and ethical compulsion aside, I would certainly become […]

This is a question raised by politicians and individuals alike both on the left and right of the political spectrum.  I actually like when I receive questions or assertions from clients and investors regarding the validity of economic numbers as I believe being  a skeptic and questioning data makes for sounder […]

The presidential campaign has brought about the suggestion of reforming existing regulations affecting the banking and financial services industry. Key election issues and how they may affect the economy include: NAFTA, immigration, terrorism, and banking regulations such as Glass-Steagall and Dodd-Frank. Some candidates argue for the repeal of Dodd-Frank, regulations put in place during the current […]

Though defaults have been higher than average during the past two tumultuous years, our Unconstrained Fixed Income strategy has provided the greatest returns this year yielding over 16 ½% gains and soundly besting the approximate 10% and 3% returns for our U.S. and International stocks through July 18th. At the end of […]

By now, you’ve probably read numerous articles explaining what Brexit means for you, the economy and your portfolio.  Though plenty of pundits will claim to know what it means, the truth is that no one knows for certain how the economy and investors will react in the short term. Though the event […]

After a bruising primary season, we are left with two major party candidates still standing and a choice of whom to vote for this November.  I’m often asked who is better for the economy and to which party I belong. As to the latter question, I generally quip that I […]

Many of our clients ask me what they should read to learn more about investing. With the summer approaching, I thought I would list some I would highly recommend and which have had the most influence on me. All of the works listed below are mandatory reading for anyone serious about […]

Boring is beautiful at Altrius.  When we purchased McDonald’s at the end of 2013, Wall Street and most investors believed the company’s best days were behind it and instead desired to focus on sexier, expensive growth stocks such as Chipotle which also don’t pay dividends.  The results have played out quicker […]

How is the above client’s stop losses working out for him?  Part of the impossibility of making stop losses work is that one must not only be correct about a decline, but also know when to get back into the market. Our approach instead is to be an owner of durable companies we […]

The Following is in Response to a Panicked Email From a Client and Contains Valuable Information For All Long Term Investors:   Dear Client, I know Tara mentioned the timing of your concerned emails this year, but I wanted to display it graphically (see below and attached chart) as I […]

Market timing only works if you are omniscient; thus, I believe technical analysis and market timing is about as useful as astrology.  Investors are always looking for a scheme, magic formula or mathematical strategy “guaranteed” to work. However, the truth is that investment must be pursued based on the fundamentals of the […]

An Economic Conversational Debate Between Altrius’ Chief Investment Strategist, Jim Russo and a New York Technology Analyst Regarding Recent Federal Reserve Actions Russo : How long are you going to hold onto the idea that a ¼% increase in the Fed Funds rate doesn’t matter?  Capitalism is built on confidence and unfortunately our Federal […]

Many consider Warren Buffett to be the world’s greatest investment mind and successful investor. However, since our firm’s recorded performance track record dating back to January 1, 2003, our U.S. Large Cap Dividend Income strategy has outpaced Berkshire Hathaway with less risk as measured by standard deviation. Though we haven’t outperformed Buffett by […]

I recently received a letter from a client inquiring about the bond funds and individual bonds: James, I’m sure you saw or heard about the barrons.com article about oversold bond funds paying ridiculously high rates of return with ridiculous discounts from net asset value. Tell me why again we should not be […]

I am always amused at this time of year as economic and market predictions are touted by “experts”. Last year, Fortune predicted the market would rise over 12%, that “mom jeans get hot” and “football helmets get a lot more futuristic.” The Atlantic offered “4 expert predictions for the global […]