On our Investment Banking home page, the image of a Rubik’s cube is used as a symbol of the complex business situations that we encounter as investment bankers. Our team works across industries helping clients buy and sell businesses, assess and fund growth opportunities, evaluate and restructure distressed companies, analyze economic uncertainties, and value minority,… Read More >
News & Insights
Have the Markets Entered a Danger Zone?
Robert Schiller, author of “Irrational Exuberance” and recent Nobel Prize winner, has been credited with predicting the last two market crashes. His preferred metric of value for the stock market is the “Cyclically Adjusted Price Earnings (CAPE)” ratio. He makes the CAPE ratio and data underlying it available on his web page. As shown in… Read More >
Projecting 10 Year Portfolio Returns
Answering the following questions requires a view on future stock and bond portfolio returns: “How much can an endowment disburse and maintain its value?” “How much do I need to save for retirement?” “What is the likelihood of doubling my account in 5 years? 10 years?” It is very difficult to predict market returns in… Read More >
PW&Co Named Top Financial Planner in 2014
Porter, White & Company has once again been included in the the Birmingham Business Journal’s List of Financial Planners. “It is always great to be included in the Book of Lists published by the Birmingham Business Journal,” said Goodloe White, CFA, President of Porter White & Company. “While it is never been our goal to… Read More >
Michael Stone Earns CFA Designation
Porter, White & Company is pleased to announce that Michael Stone has earned his CFA (Chartered Financial Analyst) designation. He joins Goodloe White as the firm’s second CFA Charterholder. In addition, Michael is also an Accredited Member of the American Society of Appraisers in Business Valuation. These designations represent a significant investment in the science… Read More >
Should We Rebalance Our Balanced Portfolios?
In our last commentary (IMC 13), we looked at rebalancing an all stock portfolio. (If you didn’t read this post, you might want to review it here before continuing.) We looked at the case of an account that only included stock mutual funds. What if we included bond mutual funds in our portfolio as well?… Read More >
Get Your Financial House In Order
As the frenzy of tax season subsides, now is an opportune time to examine your financial records and make sure that everything is in order. One goal for our clients is to help them organize their financial “household,” which not only makes record-keeping easier, but also helps a financial advisor have a comprehensive picture of… Read More >
Should We Rebalance Our Stock Portfolios?
When we manage client accounts, we typically devise asset allocation policies (or portfolio models) that specify the amount (in percentage terms) that we will try to hold of each investment option in the account. As time goes by, the investment options will inevitably have different returns and the holdings will almost never match the model…. Read More >
Barron’s Explains Dimensional Fund Advisors
In its first issue of the year 2014, Barron’s published a cover story on Dimensional Fund Advisors (DFA), an investment management firm whose funds Porter, White & Company has frequently recommended. DFA funds are not generally available to the public but may be purchased in accounts managed by financial advisors who share DFA’s approach to… Read More >
Michael Stone Promoted to Associate
Porter, White and Company is pleased to announce that Michael Stone has been promoted to Associate. Michael has been active in the firm’s investment banking practice since January 2011. Michael’s focus at Porter White includes business valuations, financial advisory services for both growing and distressed companies, and general investment banking services relating to private debt… Read More >
How Costly is New Capital?
A lot of companies approach us to raise capital. The reasons are varied – product development, plant expansion, company acquisition, working capital –and the sources of capital available to a company depend on the size, lifecycle stage, and future prospects of the company. While new capital may come with restrictive covenants and other levels of… Read More >
This Sucker Will Go Down
“If money doesn’t loosen up, this sucker will go down.” –George W. Bush “I believe this was the greatest economic statement of all time.” –Warren Buffett A few weeks ago, Warren Buffett paid former President George W. Bush a high complement by heaping accolades on a typical Bushism,[1] “If money doesn’t loosen up, this sucker… Read More >
Job Recovery – Are We There Yet?
While the great recession is starting to fade and markets are reaching new highs, the Federal Reserve is keeping interest rates at historically low levels. One explanation for the Fed inaction is employment levels. There remain fewer people working now than at the end of 2008. The following employment chart explains part of the story… Read More >
How Does a “Maze” Explain What We Do?
On our investment banking home page, the image of a maze is used as a symbol of what we do as analysts and bankers. As analysts we solve financial puzzles, and as bankers we manage the process of raising capital. A maze is a series of pathways, most of which lead to a dead end. … Read More >
How Markets Work
The first component of our investment philosophy is that “markets work.” This statement evokes the notion that markets are good at setting prices. The recently announced Nobel laureate, Eugene Fama, who is credited with coining the term “efficient markets,” put it as follows: “In an efficient market, prices fully reflect available information.” If you believe… Read More >
Michael Stone Receives ASA Accreditation
Porter, White & Company is pleased to announce that Michael Stone recently earned the Accredited Member designation with the American Society of Appraisers in the Business Valuation discipline. Advancement to Accredited Member is granted after completion of education requirements, approval of over 4,000 hours of full-time valuation and appraisal experience, and an appraisal report review… Read More >
The Value of Advice
In this first video, Goodloe talks about the genesis of our investment management business and the value of advice we bring to our wealth management clients. Value of Advice for Wealth Management Clients from Porter, White & Company on Vimeo. This video addresses the retirement savings challenge — knowing how much clients need to save… Read More >
Managing in Troubled Times
While the “great recession” may finally be in the history books, it is a fact of life that in good economic times or bad economic times, companies may find themselves in financial distress. The potential reasons for this are countless– competitive pressures, investment decisions gone wrong, changing consumer tastes, technology changes, poor inventory controls, management… Read More >
