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Cornerstones Investment Strategy

The aim to promote long-term portfolio appreciation. Our portfolio construction, investment selection, and execution. Cornerstone AM makes Investment decisions for our clients which aims to potentially generate both capital and income growth from the leading top 50 to 200 Australian listed Companies and Dow 30 shares a well. This approach aims to take advantage of market exposure to these companies and to provide dividend stream as well. We specializes in customized portfolio dealing for Investors in the Australian and Global equities markets. We aim to have a balanced portfolio that has a diversification of businesses that are great fantastic company’s purchased at reasonable price. We believe in long-term relationship investing. We hold investments for at least 10 to 20 years. 

General Features of Targeted Companies

• Companies have a high      commercial competitive advantage with a moat of confidence.
• Companies have a low cost high Profit Margin
• Companies with low   liabilities and can grow their business without excessive dependency on      debt
• Companies have strong      Cashflow
• Companies with a minimum      of ten year of reportable earnings. 
• Good return on equity and      good profitability. 

Their business can naturally grow their business at least 15%/pa on a long-term basis. The ASX and the DOW index generally double every seven years. We look for consistent growth in book value over time. All businesses are valued on a going concerns basis. We prefer to purchase these businesses for lower PER multiples on the portfolio over time. We look at PER plus growth prospects of interest in PEG. These companies have good strong cash flow. We believe in compounding growth of dividends and earnings over time, like a consistent snowball gathering pace over time. We believe in time spent holding these great businesses at reasonable prices is better for us than short-term horizons at times can be irrational markets. Our company must have a minimum of 10 years of reportable earning. 

We buy the company that over a long-term have a durable competitive advantage that endures over time. This is different from a commodity business which can’t control its growth or costs. Growth in perpetuity. Herbert Stein, Anything that can’t go on forever will end. 

We don’t try to predict Short-term movements in markets, or short-term economic view, we look at long-term prospect on amazing companies. We look for a minimum of 10 to 30-year prospect. We prefer to take advantage of short-term volatility. Mr. Market takes advantage over the long term. When prices are depressed in the short term we will actively buy for long-term appreciation. 

Where appropriate we us some debt to hold our portfolio. 

We hold 50% in Australian and 50% in US markets. US markets are larger and Titan of an industry we sometimes don’t have these industries in Australia, such as the US it companies in Australia particularly, balanced US portfolio that follows the DOW. Our portfolio needs to be exposed to computer and tech companies that give us an innovative portfolio edge. These are quite often Titan of industry, However, they do not have to be. We will invest in the great smaller innovative small-cap business as well.