Brick Financial Management, LLC was founded with the vision of a world where opportunities for wealth accumulation are freely accessible. Our mission was formed with that vision in mind. Brick Financial aims to provide investment services and advice of the highest quality free from the numerous conflicts of interest that taint the traditional Wall Street firms.
Brick Financial has set forth and follows a specific set of business and investment principles designed to guide our daily pursuit of serving our clients better. By following these principles we are putting ourselves in the high probability position of achieving stellar long term investment results.
As of December, 2015, money invested in our flagship Core (individual stock) portfolio with dividends reinvested has grown by a considerable amount. Specifically, our model portfolio has appreciated roughly 15.9% per annum (587.1% total return since its inception) compared to a 8.3% per annum gain for the S&P 500 Index and a 7.6% gain for the typical U.S. Domiciled Equity Mutual Fund. (Disclosure.)
Our model portfolios are built on an investment philosophy that rests on the three points which are:
A disciplined, concentrated portfolio, value-oriented investment approach
Investment in high quality companies with capable management
A long term investment timeframe of 5 years or more
Brick Financial exercises a bottom up, company specific selection process. We are not macro-economic focused. We pay only cursory attention to the general market. Our investment approach, commonly referred to as value investing, is based on an investment framework first presented by Benjamin Graham and later practiced by many outstanding investors including Warren Buffett. Based on this Graham/Buffett framework, we have developed our own proprietary investment criteria and perform our own research in building our model portfolios.
Our approach typically leads us to companies that share the following qualities:
A good, if not great company whose business model is easy to understand and whose products and services are in high demand and not easily duplicated
A management team that is honest and forthright that also has demonstrated shareholder favored management decisions
High free cash flow, high return on equity and invested capital and a strong balance sheet
A stock price that significantly lower than our estimate of the company’s underlying intrinsic business value
We have a long term focus – we typically hold our positions for 5 years or more. This relieves us from or delays the costs of excessive trading and capital gains. We also believe that holding our investments over such a long period allows the market to recognize the true value of the underlying company by awarding it an appropriate stock price.
Brick Financial requires no investment minimum, no asset minimum and has no minimum fees. We charge an annual investment management fee as a percentage of your assets under our discretionary management. Under certain circumstances we will enter into a performance oriented fee arrangement where we charge a lower management fee but will share in the profits earned during the investment period. Other than our management fees and trading commissions charged directly by the custodial broker (we have an independent third party take custody of your assets), there are no fees, nor any hidden charges that many mutual funds may charge. In other words, we manage funds at a substantially lower cost than your typical mutual fund.
We invite you to explore Brick Financial’s website, including perusal of our Client Letters, our Articles and our blog (The Third Pig). Also feel free to review our Performance to see if our approach leads to top-notch performance over the long term. Potential clients should be sure to develop a keen understanding of our services by visiting the Our Services area of our website. If you have any questions please feel free to call us or shoot us an email at email@example.com.