In our view it is important to choose a business that is comprehensible. This means being able to evaluate its fundamental operating performance and management’s actions. The earning power of such businesses will likely depend on fewer variables. We select a business based on gradual change rather than rapid change. Analysis is more certain when change occurs gradually.

At Concordia Capital Management we seek out to identify a superior business with strong fundamentals. Such a company will often generate above-average earnings growth, a high level of profitability, free cash flow and a strong balance sheet.

A company with superior management is also important. This means having demonstrated a desire to act in shareholders’ interests; management should have a well implemented and defined business objective and strategy.

By holding equities for a long period, we increase the probability of generating positive absolute returns while limiting the risk of significant losses over at least three years.

Investing in high-quality companies reduces the risk of deterioration in business fundamentals. We assess the risk/return exposure for each stock in the clients portfolio.  When a business proves to be different than previously assessed, the stock is less likely to recover than when we have normal market volatility.