H.L. LICHSTRAHL & COMPANY LLCINVESTMENT MANAGERS

Howard L. Lichstrahl

Managing Member and Chief Investment Officer

Howard L. Lichstrahl is Managing Member and Chief Investment Officer of H.L. Lichstrahl & Company. He has more than forty years of investment experience, having held officer positions with several large Wall Street firms, including E. F. Hutton and Company and its successor Shearson, Lehman Brothers. A graduate of The City College of New York, Mr. Lichstrahl earned a Master of Business Administration degree at the University of Miami and has done post-graduate study at the New School for Social Research and Columbia Business School. Mr. Lichstrahl is an active member of the New York Society of Security Analysts, Washington Association of Money Managers, The CFA Institute, and the Heilbrunn Center for Graham & Dodd Investing at Columbia Business School.

A Little History Behind Our Firm

  • Founded in 1996, Registered Investment Advisor
  • Conservative, disciplined, value-oriented investment philosophy
  • Focus on long term compounding of wealth
  • Small organization, intellectually honest, and accessible
  • Portfolio designed to address your needs and tolerances
  • Assets remain in your name held by a respected independent custodian
  • We provide quarterly portfolio reports supplementing monthly statements and transaction confirmations
  • Long term, low turnover, tax efficient investors
  • Research intensive investing without the risks of leverage and short selling

H. L. Lichstrahl and Company is a privately owned investment manager focused on building intergenerational wealth. Founded in 1996 by Howard Lichstrahl, we partner with families, trustees, entrepreneurs, and other investors seeking long-term growth and preservation of capital. Unlike most large investment managers who focus much of their attention on gaining new assets to manage, we are happy being a small firm, intently focused on meeting the needs and goals of our carefully chosen client partners. We do not employ a marketing department, nor do we utilize any outside managers or products. Investments are made based upon our in-house research, the attractiveness of the opportunity, and the suitability for each client’s goals, not a predefined template applied across all accounts.

We often manage all or a significant portion of our clients’ investable net worth thus preservation of capital is always the primary consideration. In biblical terms, we seek to build a house on a rock, not on sand. Our objective is to grow our clients’ wealth by compounding returns through long term capital appreciation, while assuring that the overall portfolio addresses our clients’ needs. We are disciplined investors thus we look forward to working with clients who share our philosophy. Our focus on long term absolute returns allows us to make what we believe to be the best investment decisions without regard to benchmarking to an arbitrary index. The ability to maintain a long-term view and the flexibility of capital committed is essential in providing an advantage over short term, relative performance orientations. If you believe that you share these qualities, we will be happy to discuss your specific circumstances and how we may be of service to you.

Why Long-Term Investing?

The brief answer to this question is that in the short term, share prices represent supply and demand and in the long term, share prices represent the fundamental value of the company as determined by its earnings and cash flows. As algorithmic trading and other large capital flows can readily distort the share price of any company’s stock, it is impossible for investors to avoid being buffeted by these market activities. Ownership over the long-term allows for the fundamental analysis of the company’s business, its management’s effectiveness, profitability, and return on invested capital. However, there are other pertinent reasons for investing over the long term. The U. S. government has provided long-term investors with two highly valuable advantages: non-taxation of unrealized gains and long-term capital gains tax favorability. Unlike corporate owners of shares, individuals do not mark the value of their investments to market and do not pay tax on gains until realized. This allows gains to compound over the years, without the encumbrance of taxation, until the shares are sold. When the gain is realized, it is taxed at the far more favorable capital gains rate. We seek to deliver returns over the longest term to take advantage of this “gift” of pre-tax compounding so long as the business is deserving of our and our clients’ capital.

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