One of the investment concepts that I find incredibly powerful is compounding interest. You can think of compounding interest as a snowball rolling down a hill – the snowball not only gets bigger as it rolls, it gets bigger FASTER. As I consider investments for my clients and for my own portfolio, compounding interest stays top of mind.

We are true fiduciaries, meaning we always put clients first. We charge a transparent fee, do not charge commissions on managed portfolios and do not charge an additional fee for any planning services.

We know our clients deeply and what is important to them.

We provide personal, customized service and engage all trusted advisors.

We have broad, deep experience and education so we serve as a unique resource for all stages of life among families.

We do not own any proprietary products.

We work directly with clients as both portfolio manager and advisor.

My advisory fees are competitive and we are very sensitive to the additional costs of owning mutual funds and hedge funds.

My goal is to find great stocks and hold them for the long term as true business owners.

I manage my personal accounts in a similar way as my clients.

Management is passionately focused on all stakeholders: Management works hard to serve and delight employees, customers, and shareholders. (Culture is critical to sustainable health in the organization.)
Outstanding leadership: Management treats the business as their most important asset.
Uniquely in demand: Substantial annual revenue growth potential for many years ahead. (Similar or better earnings growth.)
Large total addressable market: Has a potential for rapid growth in its market.
Strong balance sheet: No excess debt or other leverage.
Free cash flow: Significant, growing free cash flow.
Loyal customer base: Strong base of recurring revenue.
Sustainable competitive advantage: Its competitive advantage allows the company to raise prices. The business model is durable in recessions.
Attractive valuation: The stock could beat the market over the next 5 to 10 years.
Attracts good people: The business can make the world a better place – Increase productivity, improve standards of living.

The portfolio manager’s temperament: Calm and patience are required to hang onto long term great companies (Ignore the deafening media noise).
Find leading companies
Strive for very long holding periods (5+ years)
Have meaningful position sizes (30 to 40 best ideas)
Charge low fees

Baird makes available to its clients various distinct products and services, and there are important differences between those services and the duties and obligations owed to clients in connection with provision of those services. Baird and your Baird Financial Advisor do not act as fiduciaries nor is a fiduciary duty owed to a client when providing certain products and services. For more information about the products and services Baird makes available as well as the duties and obligations Baird and your Baird Financial Advisor may have to you in connection with the provision of products and services, please contact your Baird Financial Advisor.