How We Invest Your Money
Our investment goal is to produce superior investment returns over a long period of years. We pursue this goal by buying shares of companies that, according to our quantitative models and judgment, meet the following criteria :
- Sustainable earnings power
- High profit margins
- Strong financial condition
- A culture of innovation
- A price significantly below intrinsic value
Based on historical results, we believe a group of between 10 and 30 companies with the above characteristics is the best way to produce above market average returns for long periods (i.e., 5 years or longer).
The graph above shows the hypothetical results of the following asset allocation strategies:
- Aggressive Growth: 50% in Small Cap Stocks Fund, 40% in Large Cap Stocks Fund, 10% in Bond Fund
- Growth: 50% Large Caps, 30% Small Caps, 20% Bonds
- Balanced: 50% Large Caps, 10% Small Caps, 40% Bonds
- Income: 80% Bonds, 20% Large Caps
- Simulated Abbilon Strategy: 100% Stocks.
The numbers in the graph reflect the results that an average family would have earned given the following assumptions:
- Earned the nominal average household income from 1980 to 2015,
- Saved 10% of their income each year,
- Invested those savings using the above asset allocation strategies, and
- Rebalanced portfolio each year.
DISCLAIMER
The information contained herein is for illustrative purposes only. It does not constitute investment advice. Abbilon made calculations about the performance of the asset allocation strategies based on information provided by third parties believed to be accurate. We make no representations as to the accuracy of that information. Neither Abbilon nor its content providers are responsible for any damages or losses arising from any use of this information.
The performance data shown in the graph represents past performance. Actual performance is not guaranteed and may vary significantly. All investments are subject to risk, including the possible loss of capital. Investing in individual stocks carry higher risks than other asset classes, including a higher probability that returns and principal values will fluctuate. Invest only for long term goals and only if you can afford to assume the risks that your shares, when sold, may be worth more or less than their original cost.
For large cap stocks we used the historical performance of the Standard & Poor’s 500 Index. For small cap stocks, we used the performance of the NASDAQ Composite Index. For bonds, we used the performance of the 10-year US Treasury Bonds.