Why Invest with Loudon?

We have an opportunity to know our clients, and what's unique about them. We are REALISTS and INVESTORS, not DREAMERS or SPECULATORS. A personalized COMMITMENT TO CLIENT SERVICE is an integral part of our investment process. There is no greater satisfaction than the knowledge that we have provided advice in sync with the needs of each individual or family.


Investment Philosophy

We take a long-term approach

  • The short-term orientation of most investors regularly creates periods of over and under valuation for the more rational long-term investor.
  • We invest with a 3-5 year time horizon, about the length of a market cycle.
  • The average holding period for our investments has historically been about five years.


We focus on current income as well as growth

  • Dividend income analysis is the primary basis of value assessment.
  • We look only at companies with current income yields higher than the general stock market and also higher than their own 4-5 year historical average yield.
  • Our holdings consist of stocks whose yields are high because the price is low and, we believe, depressed. We do not just buy a spread of stocks whose yields happen to be high.
  • Fixed income securities are utilized if appropriate to client investment objectives.


Focus on value

  • Fundamental quality is a high priority. It is determined by evaluating the balance sheet, cash flow, access to capital, and the security of the dividend.
  • Deep fundamental analysis of each company’s finances and business strategy avoids both torpedoes and the value trap.
  • Low current expectations often produce strong future investment returns.


Low volatility

  • We believe that equity investments with above average income yields, reasonable fundamentals, and an abundance of value will produce returns that exceed market performance but with below average volatility.

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