STRATEGIES
Naylor & Company uses a deep-value strategy when choosing investments. We also use a broad range of investment vehicles to meet client needs. After looking at all aspects of a client’s financial life, we will help determine the best option for each client.
Our award-winning stock-strategy is the Naylor & Company Core Composite. By using deep-value investments and a focused equity portfolio, Naylor & Company strives to achieve long-term returns in excess of the S&P 500.
* Disclosures for Naylor & Company's Core Composite are on the Performance page.
Stock Strategy
Naylor & Company leverages value-based ETFs & mutual funds to create diversified portfolios that align with our deep-value philosophy.
ETF & Mutual Funds
Naylor & Company also works with clients to invest in short term bonds, annuities and alternative types of fixed income investments to meet client needs.
Fixed Income & Annuities
Investment Philosophy
Fundamental Research
Through extensive research, we obtain a thorough understanding of the businesses that underlie our investments. As long-term owners of businesses, we want to understand why a company or industry is growing and whether it is likely to continue. We pay particular attention to revenue and earnings growth, return on equity, competitive strength and stability of the company.
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Rational Valuation
The key to making good, long-term investments is refusing to overpay. This mitigates risk by avoiding over-priced equities that can dramatically fall in value if their businesses slow for a time. In particular, we carefully review stocks, ETFs and mutual funds for their forward price-to-earnings (P/E) ratios to ensure that we are getting good value for the price we are paying for them.
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Proven Track Record
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For the majority of our investments, we demand proven track records and a demonstrable ability to earn profits before we move forward. This is another way that we mitigate risk for our clients.
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Long-Term Investment
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When we make an investment, we hold it for a relatively long period of time to benefit from the realization of the full value of the investment and its growth prospects. We typically keep our investment until the growth prospects diminish or its price relative to its earnings justifies its sale. As a result, gains are typically deferred and classified as long-term capital gains, and receive more favorable tax treatment.
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Patience
At Naylor & Company we are constantly looking for undervalued investment opportunities. The best opportunities often take years to realize their full value. We call this time arbitrage. By being willing to be more patient than the rest of the market, we can obtain and benefit from some of the best values in the market.