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Our Strategy to Tame the Turbulent Teens



Talk about clichés!  Our base assumption is 3: 2: 1.  There are three big risks, two vast opportunities, and one great challenge.


The three big risks are: 


1.   Slow growth rates:  Excessive debt burdens and developed world demographics imply slow or no growth.  This is a shift from the pattern since World War II.  We therefore assume free cash flow will be sole driver of equity returns. 

2.  Debasement of paper money:  Central Banks are printing unprecedented amounts of money to avoid severe deflation. We believe you should own stuff: farm assets, infrastructure assets, strong currencies, fungible commodities in the ground, etc. to anticipate this risk. 


3.     3.  Interest rates:  The cost of money remains phony and creates distortions.  Ours will not remain a zero-interest-rate world forever. Focus on strong balance sheets; seek to avoid assets that are particularly sensitive to the cost of money changing.


The two vast opportunities are: 

1.       An aspiring world with an emerging global middle class yearning for better food, clothing, education, luxuries, travel, etc. and the infrastructure to support it... 

2.       An aspiring world needing security, both public and private: most want a strong national defense and a crime-free cyber space.  Everyone wants secure energy supplies, safe water, a clean ecology, assured retirement income, and a place to keep assets that won't be expropriated.


The one challenge:

1.       The challenge is finding Stores-of-Value in an Age of Uncertainty & Manipulation.


The Barrack Yard approach is to embrace opportunity through investing in companies that meet our definition of the three constructs known as:

a. perpetual annuities

b.  toll-takers

c.  rarities

Equally, we seek to mitigate risk by adhering to:

a.  our 3-pronged investment philosophy

b.  the 5-enduring principles

c.  an investment process toolset developed over many years.


For more information, please visit www.BarrackYard.com.  


Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Donnelly Steen & Company), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Donnelly Steen & Company. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  Donnelly Steen & Company is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of Donnelly Steen & Company’s current written disclosure statement discussing our advisory services and fees is available for review upon request.


Martin Leclerc is a Registered Representative of Coastal Equities, Inc. and an Investment Advisor Representative of Donnelly Steen & Company. Neither Coastal Equities, Inc. nor Donnelly Steen & Company is associated with Barrack Yard Advisors, Inc. Securities are offered through Coastal Equities, Inc., Member FINRA/SPIC, 602 Main St., Suite 801, Cincinnati, OH 45202. Investment Advisory Services are offered through Donnelly Steen & Company, a US SEC Registered Investment Advisor, 1201 N. Orange St., Suite 729, Wilmington, DE 19801.


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Comment   |  7 years, 8 months ago from Bryn Mawr, PA