THE FIRM
Research is the lifeblood of our company. Through our disciplined investment approach, we aim to grow client capital over time within a lower risk framework. Capital preservation is of paramount importance.
We are a management-owned firm and operate without external influence or pressure, free of ties to product providers and financial service institutions. Employees and partners of the firm own the same securities as our clients, ensuring that interests are aligned.
Lorne Steinberg Wealth Management Inc. provides discretionary investment management services to individuals, corporations and non-profit organizations. Accounts are managed on both a segregated basis and through proprietary pooled funds, depending on client circumstances.
ATTRIBUTES
Conservative, disciplined investment philosophy
Research driven, not sales driven
Employees hold the same investments as our clients
No conflicts of interest / corporate affiliations
Management-owned
INVESTMENT PHILOSOPHY
Our investment philosophy is based upon the principles of fundamental value investing. The type of company in which we seek to invest is one that is strong financially and whose intrinsic value is greater than the stated price of its shares. This provides investors with a “margin of safety” (a concept outlined by Benjamin Graham, Warren Buffett’s professor and mentor), which is the key to capital preservation.
While we are not active traders, we will not hesitate to sell all or part of an investment that we believe has become over-valued. Experienced investors know that holding shares in a company whose share price is irrationally high inevitably leads to losses. We carefully monitor our existing holdings to ensure that our investment thesis remains valid.
Diversification is a fundamental aspect of our risk management process. We maintain guidelines regarding the maximum size of any single holding and exposure to any single industry group.
ATTRIBUTES
Fundamental value approach
Focus on capital preservation
Margin of safety
Disciplined
Portfolio diversification
RESEARCH METHODOLOGY
Research is our cornerstone.
Our investment ideas are generated through rigorous in-house research and analysis, as well as through our proprietary screening process.
Our research strives to ensure that we have a thorough understanding of every business in which we invest, based on its specific characteristics, operating history, financial statements and market position.
We look for businesses that meet specific investment criteria. These businesses must be financially sound, have an established track record of free cash flow generation, employ good corporate governance practices and be priced at a significant discount to the company’s intrinsic value. We consult a wide array of external resources, such as government agencies and industry organizations, in order to examine the impact of technology, regulatory changes and secular industry trends.
COMMUNICATION & REPORTING
At Lorne Steinberg Wealth Management Inc. we are committed to clear and regular communication with our clients.
Portfolio valuations are prepared on a quarterly basis and include a summary of all accounts. We also provide a quarterly letter that reviews recent transactions and discusses our outlook on the economy and the capital markets.
National Bank Independent Network provide monthly statements when there is any account activity (“activity” does not include dividends & DRIPS), regular quarterly statements, and tax reporting at year end. Online access is also available upon request.
SECURITY
National Bank Independent Network (NBIN) is the preferred custodian of client assets. Accounts at NBIN are held in the client’s name. Lorne Steinberg Wealth Management Inc. (LSWM) does not hold any client assets.
NBIN is a member of the Canadian Investor Protection Fund (CIPF).
LSWM receives no compensation from NBIN. NBIN was chosen due to its value-added service, competitive transaction costs and overall organizational strength.
LSWM is registered in all provinces across Canada.