Stocks & Funds
Additional Resources
Investing in Stocks
The simple fact that many great companies are publicly traded provides tremendous opportunity for investors to own shares of stock and participate in their growth. Familiar companies like Wal-Mart, Home Depot, Dell Computer, and Starbucks Coffee, as well as many others, offered shares of stock to the public early on in their growth. The potential for long-term capital appreciation in today’s great stocks is no different than it was for the above mentioned companies, and is the reason that most investors should allocate some portion of their investment accounts to common stocks.
While there are great companies, there are also many more poor companies. Distinguishing between the great and poor requires many hours of research, and even then great companies can be purchased at elevated prices, resulting in poor returns. With over 10,000 publicly traded companies to choose from and 25 to 30 hours of research needed to really know each company, CIM believes that stock research and trading is best left to asset managers and mutual funds.
CIM focuses its research not on individual stocks but on mutual funds and asset managers. CIM is a manager of stock managers. By knowing stock managers well, CIM is able to match the needs and desires of our clients by assembling the best group of analysts, traders, and asset managers within the client’s risk tolerance and investment objectives. Based on performance, changing market conditions, and other factors CIM is able to add and replace asset managers as needed.
CIM’s approach to stock investing is much like a baseball team. The client is the owner of the team, the Investment Advisor is the team manager, and the asset managers are the baseball players. Each player (asset manager) is selected by the team manager (CIM Financial Group) based on their offensive and defensive abilities with stocks. The goal is to create a winning team for the owner (client). In baseball it would not make sense for the owner or the manager to try to be all of the players. The same is true with stock investing.
