In our previous Compound Interest series posts, we have discussed the concept of a Liquidity Bucket. This practice allows investors to protect their portfolio's ability to consistently provide for spending needs and avoid liquidating stocks when they are temporally down in value. As explained in our previous piece, owning investment …

One of the significant, real-world issues with investing in retirement is consistency and reliability of income. Every plan looks great when an advisor is pitching to a 25-year-old that they will be a millionaire by saving monthly and waiting a long time. After all, compound growth is a powerful force …

At Crawford, we have a common sense retirement planning solution that focuses on portfolio income and utilizes a proprietary liquidity bucket approach. This dovetails with our long-held investment philosophy of owning an adequately diversified balanced portfolio of dividend paying stocks and high-quality bonds to generate current and sustainable income in …

The 60/40 portfolio has long been the traditional framework for a balanced investment allocation, or at least a very popular starting point. It is believed by many that the combination of 60% stocks and 40% bonds will give investors exposure to the growth potential of stocks and the stability of …

At Crawford, a key tenet of our investment philosophy is the belief that investing in high-quality securities narrows the range of potential outcomes for our clients. Through narrowing the range of investment outcomes, we believe we improve the chances of success, mitigate the likelihood of adverse returns and limit the …

Active investment managers seek alpha, which is the component of the Capital Asset Pricing Model (CAPM) that indicates outperformance relative to an index. The CAPM equation rests on the idea that higher risk, or more volatile (measured through beta) investments, should provide higher returns over time. While this is not …

There is a largely ignored section of the Wall Street Journal that we observe each day. The “Markets Digest” section of both the print and online versions of the Wall Street Journal includes a small section titled “Dividend Changes.” It almost always appears toward the bottom of the page, and …

Crawford’s investment philosophy was born fifty years ago when investing in high-quality growth stocks or “nifty-fifty” type companies was the major market trend. One day during a portfolio review session, the firm’s founder, John Crawford, III, was asked by a client, “Where’s the yield?” After discussing this with members of …

We believe that quality is a very important factor in portfolio management, but we note that it is fundamentally different from other investment criteria because it impacts not just return but risk as well. In the lexicon of finance, quality means something quite different than in everyday usage. In finance, …

At Crawford, ours is a program focused on perpetual accumulation that is very much aligned with the needs of individual investors. We have talked a lot about the merits of investing in high-quality companies that exhibit dividend integrity and the necessity of reduced volatility, smooth patterns of return, and reducing …

We are titling our new, private investor oriented blog Compound Interest. Our first installment, “What’s in a Name?” shares the genesis of this title and attempts to explain how we will address areas of interest to our individual investors. Our intent is to provide relevant investment and financial information that …