Frequently Asked Questions  

What is your investment philosophy?
Where do you get your research?
How can a small firm compete against the big funds and money managers?
Could you construct a more aggressive portfolio for a client who is willing to tolerate greater risk?
How is Clark & Stuart compensated; do you receive commissions?
Will I still pay commissions to a broker?
Will I incur any other charges?
Does Clark & Stuart offer One-time consulting services?

What is your investment philosophy?

            There are many valid approaches to investing. We are guided by a conservative-growth strategy which emphasizes common stock ownership of high quality companies. Preservation of investors’ capital is our first priority. For a thorough discussion of our investment approach, please review “Our Investment Strategy” elsewhere on this site.

Where do you get your research?

            Clark & Stuart, Inc. was founded on the belief that our clients expect proprietary, value-added investment advice. Consequently, we do our own research. We study our companies thoroughly and monitor their progress through analysis of quarterly financial results and frequent contact with management. We visit each of our owned companies at least once a year to assess their competitive position, the economics of their business, and their commitment to creating value for shareholders.

How can a small firm compete against the big funds and money managers?

            We acknowledge that our competitors enjoy substantial resources and are able to employ armies of analysts. They also have more third party information sources. However, a successful investment program requires an ability to distinguish between mere information and genuine insight as well as the patient application of a well defined investment approach. We are removed from the noise and the “group thinking” which dominates and often dictates investment activity at large organizations. We are closer to our clients and more attuned to their needs and objectives.

Could you construct a more aggressive portfolio for a client who is willing to tolerate greater risk?

            Yes. Some of our clients, particularly those who have many years before retirement, have asked us to adapt our strategy. In these circumstances we have owned fewer securities and established positions in smaller, faster growing companies which still satisfy our quality standards and purchase price disciplines.

            However, we do not attempt to be all things to all people. It is in the best interests of all our clients that we remain focused on the strategy which works for us. We believe that our investment approach is appropriate for the majority, or core, of any client’s investment portfolio.

How is Clark & Stuart compensated; do you receive commissions?

            Our services are available for a fee which is based on the value of your portfolio. Consequently, our compensation rises or falls with the level of your assets. Although we do not share in the profits or losses of our clients, our success is linked to yours. We believe our fee (1% annually) is appropriate compensation for the value we add to your investment returns. Indeed, considering the cost of less important goods and services (e.g. club memberships, automobiles), the price of sound money management services is an excellent value.

            We are not a broker-dealer. We receive no commissions or any other form of remuneration other than the management fee earned by serving you.

Will I still pay commissions to a broker?

            Yes. Trading execution is the principal function of a broker and commissions are required for their services. Clients of Clark & Stuart, Inc. are asked to specify their preferred broker. Our policy is to use brokers who offer competitive commissions. Because we are guided by a long term investment strategy, we expect to incur modest annual portfolio turnover; thereby minimizing commissions.

Will I incur any other charges?

            Brokers provide custody of your securities as part of their normal service. However, some accounts may carry modest annual custody fees.

Does Clark & Stuart offer One-time consulting services?

            No. We believe that clients are best served by an adviser who cultivates a continuing relationship and responds to the changing needs and objectives of the client. Moreover, we want to be accountable for our decisions and recommendations.

            However, we also understand that some clients prefer to go a little slower when establishing a relationship. Therefore, we are happy to begin serving you on only a portion of your investment portfolio. We are confident that we will earn the chance to manage a larger share.