At Blume Capital, the firm principals personally invest in the same securities as our clients. We manage portfolios with a value-oriented, research-driven approach and have achieved superior long-term returns by adhering to the following guiding principles:
- Investing is a long-term endeavor. Be patient.
- Diversify. Sensible asset allocation strategies are critical to mitigating risk.
- Price matters. Purchase price is the most important determinant of long-term investment return.
- Maintain a long-term perspective. Adhering to a disciplined investment process is critical to preventing poor decisions driven by emotion.
- Market timing is an exercise in futility. It has consistently proven to be an unsuccessful investing strategy.
- There is no "free lunch" in investing. Set realistic return expectations and always be mindful of risk.
- Costs matter. Be attentive to transaction fees and taxes.
- Think independently. Superior performance does not come from following the crowd.
- Seek opposing points of view. Test and re-test your investment thesis.
- True risk is the permanent loss of capital, not fluctuating stock prices.