We believe that pricing should reflect performance. Warren Buffett states: “The .350 hitter expects, and also deserves, a big payoff for his performance – even if he plays for a cellar-dwelling team. And the .150 hitter should get no reward – even if he plays for a pennant winner. Only those with overall responsibility for the team should have their rewards tied to its results.” (Berkshire Hathaway Annual Report, 1985)
We open fee based accounts as a Registered Investment Advisor. Adams Financial Concepts has found fee based managed accounts are more cost effective and are more consistent than the transaction accounts he has managed.
Yes, please call (206) 903-1019 for an appointment.
For accounts $250,000 and above, we will travel.
We have in the past and would consider it again if there was an important or critical topic to discuss.
These are two systematic approaches (and some combinations of the two) to building portfolios. Mike Adams subscribes to building portfolios in the “Bottoms Up” approach. Learn more.
Alpha Risk: The risk specific to a company regardless of whether the market is up or down. Alpha is a coefficient which measures risk-adjusted performance, factoring in the risk due to the specific security, rather than the overall market. A high value for alpha implies that the stock has performed better than would have been expected given its beta. For example, an alpha of 0.4 means the stock outperformed the market-based return by 0.4%.
Beta Risk: The risk or volatility relative to the market. A stock with a beta of 1.0 will tend to move higher or lower in tandem with the stock market. A stock with a beta of over 1.0 will tend to move with greater fluctuations than the market and a stock with a beta of less than 1.0 will tend to have a lesser fluctuation than the market. Efficient Frontier: In Modern Portfolio Theory, the efficient frontier is the line on a risk-reward graph that is comprised of all the efficient portfolios that theoretically are the best return that can be achieved for any given risk level.
Learn more about the Modern Portfolio Theory.
If you Google Adams Financial Concepts, you may see a legal form online labeled a “consent order.” Understandably, this has caused concern for some of our clients and prospective clients. So, in the interest of full disclosure, here is a short explanation.