Investment Philosophy
At our core, we are value investors. We focus our equity investments on quality stocks (those which have achieved recognition by demonstrating superior fundamental quality) and index funds, particularly Exchange-Traded Funds (ETFs).
Through years of unbiased research dedicated to identifying meaningful data related to asset pricing, Drach Advisors has developed general frameworks and specific techniques for a variety of investment objectives.
Our approaches aim to identify misperceptions of risk among quality companies and index funds. Markets routinely succumb to excessive anxieties, allowing for accumulation of quality and diversified investments at discounted prices. Markets also routinely acquiesce to euphoria, becoming overvalued and offering exit points. Our methodologies capitalize on patience and a willingness to to take contrarian stances.
We execute our investment approach through two general frameworks: our Domestic Investment Style and a Global Investment Style, both of which can be specifically adapted or intertwined to help meet the goals of most investors.
Domestic Investments
Our domestic approach involves a focus on quality, U.S. listed stocks. These stocks have strong histories of consistently growing their earnings and dividends, or have otherwise been recognized for their quality. This approach was pioneered by Robert F. Drach and is outlined in the High Return Low-Risk Investment book series, as well as in the Drach Market Research weekly newsletter, published since 1977. Based on several data sets, the method is a cyclical approach with predetermined buy/sell points, designed with the goal of achieving a high percentage of winning trades and taking advantage of consistent positive compounding.
Though our investment strategies are time tested, the equities market is a perpetually changing landscape and managed applications are consistently evolving. The methods by which we measure and prioritize individual data sets are fluid, accounting for shifts in the market environment. Drach Advisors is also continuously adjusting risk metrics to manage evolving market dynamics.
Global Investments
The rapid expansion of global investment opportunities inspired us to explore methodologies based on the fundamental strengths of our domestic strategy that could be successfully applied to increasingly accessible global markets.
The diversification provided by Exchange Traded Funds (ETFs), combined with advanced risk analysis, allows us to significantly expand the horizons of clients wanting to utilize our methodologies.
Global Time Overlay was developed through Robert B. Drach’s extensive research, strenuous back-testing, and real-time asset management in a variety of market conditions.