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Income Investing: Don’t Get Burned!

After eight years the one constant in this market has been that interest rates are still sitting near zero and investors are still starving for income. For decades academic models for investing (which we despise) teach people that as you grow older you must shift more money into interest bearing investments like bonds (including bond funds) and dividend producing stocks (or stock funds). Most advisors that manage money subscribe to the same theories which only adds fuel to the fire. So what is the fire? The fire is the valuations that people are currently buying assets. By valuation we are referring to the price that something is actually worth versus the current market price. Something under-valued means that it is cheaper than the actual value that it’s trading for on the market. Something over-valued means that it is more expensive than what its actually worth. Howard Marks, one of our
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Categories: Strategy.

Two F-words in Finance

For the last year Tony Robbins has been on a mission. That mission is to educate people to the two F-words in Finance . . . Fees and Fiduciary. Below is a terrific video from Investment News. Tony Robbins takes to the streets of New York to explain what fees can do to a portfolio as well as the importance of a “fiduciary.” We at Iron Gate Global Advisors are proud to be Fiduciaries for investors. We are also proud to keep fees relatively low compared to the rest of the industry. Enjoy the video . . .     To view the article and video on Investment News, click here.
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Categories: Personal Finance.

What we like our CEOs to say

We have read thousands of annual reports of the years. Some good, some bad, some terrific. One of the businesses that we own (which, for compliance reasons, will remain nameless) published an annual letter that contained a few phrases that we love to see. The phrases are below and are all tied around the importance taking care of the business owner (the shareholder). Financial Objective: To maximize intrinsic value per share, defined as (a) the unlevered free cash flow per share that, in our best judgment, will occur between now and the long-term future, appropriately discounted to reflect our cost of capital, minus (b) net debt per share. We manage our business for long-term results, and our quarterly financial results, especially our GAAP results, will often fluctuate, which may lead to volatility in our share price. (As a result) our revenues and operating results often vary significantly from quarter to quarter
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Categories: Strategy.

Discipline Defeats the Roller Coaster

***Below is a section of our client market commentary letter. We have removed specific stock reviews and other information that is meant for clients eyes only.*** Discipline Defeats the Roller Coaster There’s something we often say in our office as we discuss portfolios and the market as a whole. During times of volatility it helps us stay grounded and maintain the discipline that our clients expect, it’s simple but in our eyes, it’s very profound. “Volatility is the price you pay for returns.” This first quarter of 2016 was a perfect example of why we refer to that saying often. If you’ve ever been on a roller coaster then you know how the first quarter felt. It was a fantastic ride that ultimately ended as discipline won out. Below is a picture of the S&P 500 (an index of the 500 largest U.S. companies). Here’s a snapshot of what occurred
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Categories: Markets.

Lessons Learned From The Roller Coaster Ride: First Quarter Market Commentary

In this month’s market commentary I review the roller coaster ride we had in the first quarter and discuss how well it taught some of the principles we promote regularly in our investment advice.       Download our report, “Overcoming the Six Mistakes that Destroy Wealth” report and see how we teach you to manage through roller coasters with discipline and sound investing principles.      
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Categories: Markets.
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