Letters to Our Clients
A few years ago I stumbled onto Tocqueville Asset Management, a New York based investment advisor, and am happy I did. Although their approach to the day to day management of their client portfolios is quite different than our own, their business and investment philosophy is very similar. This includes growing and preserving our clients’ long-term capital and investing our own money alongside our clients. Much like us, Tocqueville recognizes that the day to day prices for securities are highly volatile, as they are affected by human emotion. And it is this price volatility that creates the opportunity for long term investors who concentrate on business fundamentals.
It has been years since we have seen new highs on the Dow Jones Industrial Average and the S&P 500. Although the wait can be traumatizing, it’s nice to get proof that market prices ultimately recognize growth of business value.
With record highs, a lot of you may be experiencing a little anxiety. I can’t blame you for that, but I can try to give you a little relief in hopes that your anxiety doesn’t lead to a full blown panic attack. My own anxiety does not come from the markets, but from realizing how time flies! I still remember thirty years ago when I watched the Dow Jones reach a new high; closing the year of 1982 at 1046.54. How can thirty years go by so quickly?
Kendall J. Anderson, CFA