H.L. Lichstrahl & Company, LLC Investment Managers
Honest, Rational, Disciplined. These are the principles that we live by.
We focus on growing our clients’ wealth by compounding long-term after-tax returns while emphasizing capital preservation.
H.L. Lichstrahl & Company, LLC- Investment Mangers
Founded in 1996, H.L. Lichstrahl & Company, LLC, is a privately owned Registered Investment Advisor. We follow a disciplined, rigorous, research-driven approach to create and manage personalized investment portfolios for a select clientele.
Registered Investment Advisor
H.L. Lichstrahl & Company is a Registered Investment Advisor. All assets remain in your name and are held by a respected independent custodian to provide full transparency and the highest safety.
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. H. 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.
The H.L. Lichstrahl & Company Difference: Our Investment Philosophy
“Traditionally. The investor has been the man with patience and the courage of his convictions who would buy when the harried or disheartened speculator was selling.”
Benjamin Graham & David Dodd
H.L. Lichstrahl & Company is a small, privately-owned investment management firm dedicated to helping clients achieve their financial goals through research-based, disciplined investing.
We utilize a research driven, value approach to security selection, focusing our analysis on “what is” rather than attempting to forecast “what will be”.
Being an investor means investing in companies with a long-term owner’s mindset. We pay scant attention to quarterly earnings and short-term price targets. Instead, we perform rigorous research on companies for potential investment, asking key question such as:
- Is this company financially stable?
- Is there a durable competitive advantage?
- Are they earning an above-average rate of return on capital, and why?
- Is the management team competent, honest, and shareholder-oriented?
- Do they wisely reinvest the cash generated by business operations?
We have found that companies that meet these criteria are companies whose earnings power grows over time. The result: returns on invested capital that compound, increasing the value of the business.
Margin of Safety
Once we have uncovered an attractive business, the most important criteria is that we must be able to purchase shares of these companies at an attractive price, that is, at a discount to what we believe the shares of the business would be worth to a knowledgeable, conservative businessperson.
This discount is our “margin of safety.” Despite our extensive research, we realize that unforeseen conditions may arise that impact share prices in the short term. We focus on the long-term prospects of the company’s excess cash earnings potential.
Long Term, Disciplined Investment Strategy
Once the decision is made to invest, we view ourselves as partners in the business and often hold positions for many years, thus allowing us to take full advantage of pre-tax compounding. Discipline means avoiding emotional reactions to market volatility, or short-term price fluctuations, and holding assets to achieve long-term goals.
We take the time to understand each client’s needs, tolerances for risk, and market volatility.
We then customize a portfolio of individual equity and fixed income securities that we believe will provide the long term returns the client is seeking.
Fixed Income Investments
Fixed income investments are managed to find the greatest risk-adjusted value rather than merely purchasing the highest yield or chasing after short-term gains.
We prefer to construct “laddered” portfolios within a limited maturity range to achieve a more stable return. Credit risk is addressed through adequate issuer diversification. In general, the longer the maturity of the issue, the higher the credit rating demanded.
Attempting to maximize fixed income returns by pursuing short-term interest rate movements leads to increased volatility and greater interest rate risk as positions are taken at the yield curve's extremes. Purchasing undervalued or underpriced issues leads to more stable overall returns when interest rates rise and fall.
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If you are interested in working with H.L. Lichstrahl & Company, please use our contact form to tell us how you heard about us and to make an appointment.
H.L. Lichstrahl & Company works with a limited number of clients to ensure we can offer the personalized attention our clients require. We welcome referrals from current clients and invite you to contact us using the form below.