Camarda’s Caesar Portfolio: Executive Summary

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Executive Summary

  • Camarda-exclusive individual stock strategy
  • Not a mutual fund or investment product – stocks held directly in client accounts
  • Stocks selected and monitored by Camarda Portfolio Board based on proprietary research
  • Targets quality stocks with attractive dividends trading at discount to “real” value
  • View stock investment as ownership of a company, not a just a piece of paper
  • Look for strong, regular dividend cash flow to clients – get paid to wait for stocks to appreciate
  • Total return is dividend cash flow and expected higher eventual sales price
  • Patient investor/owner – watch share of profits cash flow in while wait to consider a sale when the price is right
  • Targets better-than-bonds income, and big payoffs down the road

Caesar, named for the Roman general, is an individual stock strategy designed by Dr. Camarda and run by the Camarda Portfolio Board. It is available exclusively to Camarda clients.

It is not a mutual fund or investment product managed by an outside company. It uses individual stocks, picked and overseen by the Camarda Portfolio board, which are placed in clients’ individual accounts, not in a fund. Each client owns their shares in the Caesar stocks directly, in the client’s name.

The stocks are picked and monitored based on proprietary Camarda research, and research collected from others.

The Caesar strategy targets stocks of companies we believe to have very solid businesses with strong outlooks.

We look for investor cash flow – stocks that pay strong dividends regularly and directly to client accounts.

Most importantly, we look for stocks that represent very good value – we look to buy pieces of companies at “really good deal” prices – because we believe that if we buy quality cheap there is a much better chance of outperforming the general market over time.

The overarching principal is acquiring companies we believe to have high quality, profitable businesses operating in good industries, and that have attractive prospects.

We generally look for individual stocks paying dividends of 3% or more, and look for an average portfolio yield of over 5%.

It is important to note that this dividend yield is not the total return expected.  They are the investors’ share of company profits paid out to them as owners of the company. We expect to make more – hopefully much more – by eventually selling the shares for higher prices than we buy them for. But it is very nice, and profitable – to get paid to hold the shares while we wait, as it often takes a few years for the value we seek to be captured.

Real estate investing offers a good analogy. After soaring to crazy prices from 2004 to 2008, the Las Vegas real estate market went way down, and houses were selling for much less than they were worth. From 2010 to 2014 the Vegas market went up over 60%***, and patient value investors who bought cheap were well rewarded for waiting. In the meanwhile, they got paid to wait by renting the houses out. The houses have not changed. Trend chasers got killed on the run up, but bargain hunters made out like bandits. The buy price really matters.

Value investing in stocks is like that.  It can take a while to capture the value, sometimes years, just like Vegas. In the meanwhile, the stocks can go up or down based on news or popularity, but we consider these as noise, just short-term fluctuations in a long-term trajectory.

Camarda believes that by having a Buffett mindset – looking at your stocks as an owner of a company, not a holder of baseball cards or lottery tickets, and watching your share of the profits cash flow in as you wait for the market to appreciate the value of the company you own,

should you consider a sale – is a great and smart way to be an effective investor.

*  Offshore (all non-US, aggressive), Capital Appreciation (aggressive), Stabilized Growth (moderately aggressive), Balanced (moderate), Conservative (moderately conservative) and Integrated Income (quite conservative).

** https://finance.yahoo.com/news/hottest-housing-market-2018-163701109.html

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