If you have finished reading the Investment Process section of our website and still are not sure if Silver Spring Capital is the right place for you, we leave you with the following closing thoughts:
We eat our own cooking. Typically, when regulations permit, we will own many of the same stocks and bonds in our own accounts as we own for you. The best way to ensure that we are constantly motivated to achieve your goals is to put our money on the line with yours.
Wealth does not happen overnight. It is typically accumulated over years, even decades. Its accumulation requires patience, prudence and the ability to manage financial resources with little or no emotion. Very few individuals have the temperament to accomplish these three things with their own money. Professional management is, for most people, the only way to achieve long term success with their money.
We endeavor to manage our client portfolios in a tax-efficient manner. This means that you can expect relatively low turnover in your account. Low turnover means longer holding periods for securities which translates to a lower overall tax burden (and markedly lower transaction costs). Our ability to hold investments for long periods of time (on average) is a by-product of the kinds of companies we seek out as investments. Great companies, by and large, should be owned for a long time. This is one of the secrets to compounding wealth.
At Silver Spring Capital, we invest in businesses, not stocks. Good businesses demonstrate growth on a regular basis. Their sales and profits increase annually. They generate sufficient cash from their operations to fund their capital expenditure needs, to return a dividend to their owners and to retain earnings for reinvestment in the business. They are not over-burdened by debt. They have smart, honest managers who own a significant piece of the company. When we can find these businesses, we will be opportunistic and purchase shares in them at historically cheap prices. After that, we will own them for as long as they do not get overpriced or the prospects for their future growth are not diminished.
Our aim for our clients is to own a well-balanced portfolio of these superior companies and temper risk with an allocation of bonds and cash appropriate for each portfolio. We believe that if we are successful in doing this, then the accumulation of wealth by our clients will be the necessary result of our efforts.