Investment Approach
Fundamental analysis. Value-driven. Long-term focus.
How We Evaluate Securities
Simplify Investments uses fundamental analysis in evaluating securities. This involves analyzing an individual company’s strengths and weaknesses, financial health, quality of management, and growth opportunities.
We follow and learn from famed value investors, as great ideas often originate there. Sources of information include, but are not limited to: SEC filings, earnings call transcripts, trade publications, and journals.
Outstanding Long-Term Economics
We seek companies with durable competitive advantages and compelling long-term business models.
Conservative Intrinsic Value
We develop conservative estimates of each company’s intrinsic value — and only buy at a meaningful discount.
When We Buy
- Companies found trading at a reasonable discount to estimated intrinsic value
- Companies with outstanding long-term economics and durable competitive advantages
- Diversified or specialty low-cost Stocks, ETFs, or Bond ETFs that meet individual client objectives
When We Sell
- Better opportunities are found elsewhere
- Companies are trading near or above estimated intrinsic value
- Growth opportunities subside
- Financial health of the company deteriorates
- Management decisions become questionable
- Change in the client's investment objective
Portfolio Discipline
Simplify Investments maintains a focused portfolio of 10–20 best investment recommendations (Stocks, ETFs, or Bonds) at any given time. These recommendations also include diversified or specialty low-cost ETFs and bond ETFs to meet individual client objectives.
Investment recommendations do not change on a weekly or monthly basis. Only a handful of changes may be made in a quarter, unless the overall fundamentals of the market shift drastically.
Key Risks
- Investments may be subject to high levels of economic or financial risk, resulting in wide swings in the price of a security.
- The value of a selected investment may be incorrectly assessed.
- This style of investing may not perform as well over intervals of less than 3–5 years.