Investing with Us
Asset Management at Fortune Financial begins with the understanding of your personal and financial goals, investment objectives, investment time horizon, and risk tolerance. Once we establish your investment strategy and asset allocation model, we will establish an account for you with a custodian that we manage on a discretionary basis. Investment decisions are always consistent with your investment strategy.
We invest in equities for our clients, utilizing institutional discount brokerage platforms that allow investors to receive professional money management, and a diversified portfolio at low costs. We do not directly have custody of your assets. Your assets are kept safe in an account at the custodian brokerage firm. Your brokerage accounts will have SIPC protection.
If you have conservative risk tolerance, we have options for you. We can manage a fixed income portfolio for you, bonds, T-bills, CDs, Annuities, etc.
Being able to rely on Fortune Financial to implement your financial plan will ultimately reduce stress and help you to achieve your life goals..
In this economic environment, can you afford to not take advantage of the type of financial expertise used by institutional investors?Call us @ (973) 420-9444
Philosophy
Fortune Financial uses a fundamental stock selection process to construct your diversified portfolio. Some of the best-known investors in history have been fundamental analysts, including Peter Lynch, the legendary manager of the Fidelity Magellan mutual fund. Under his management, Magellan was the best performing mutual fund in history. Another famous fundamentalist is Warren Buffet, the brilliant investor behind Berkshire Hathaway.
Fundamental stock analysis requires, among other things, a close examination of the financial statements for the company to determine its current financial strength, future growth and profitability prospects, and current management skills, in order to estimate whether the stock's price is undervalued or overvalued. A good deal of reliance is placed on annual and quarterly earnings reports, the economic, political and competitive environment facing the company, as well as any current news items or rumors relating to the company's operations.
Value Strategy
Fortune Financial primarily utilizes a value investment strategy, but will also takes advantage of long-term growth opportunities. .
Our Value Investment Strategy includes some of the following aspects:Attractive valuation – We recommend stocks, when their prices are trading below Fortune Financial’s valuation, based on reasonable expectations for the long-term earnings power and capitalization rates of that business.
Sound financial condition – We only recommend investing in companies with acceptable levels of debt and positive cash flow.
Attractive business economics – We recommend investment in cash-producing companies that are capable of earning acceptable returns on capital
Turnarounds – We recommend companies that have had poor results due to company-specific and/or industry-wide conditions that we believe will not continue indefinitely.
Companies in transition – We recommend companies whose stock price may not reflect positive change in the business, such as new management, new products or a cyclical up trend in an industry.
Companies with hidden assets and unrecognized companies - Undervalued real estate, unrecognized business lines and other “hidden” assets may not be given enough credit by investors, providing investment opportunities for our clients.
Earnings shortfalls – We may recommend a company in a group or industry that is out of favor, or whose earnings have disappointed, causing its stock price to drop below our estimate of the value business and creating the potential for patient investors to benefit when those earnings improve.