Investments & Risk Management

ALJAR, Inc. enables and supports businesses, families and foundations as they build wealth. Companies with consistent cash flow, needed products or services, and cultures of integrity often present excellent opportunities for acquisition or investment when the price is right.

 

When businesses enter an earnings acceleration phase after emerging from the bottom of a cycle or from new products and markets, there are often substantial opportunities for profit. Firms with substantial assets (especially cash assets) that are under-appreciated because of lackluster earnings frequently provide low-risk rewards to patient investors and purchasers.

Short-term fluctuations are either painful or pleasant and may try your patience. Greed and fear lead many purchasers and investors to foolish acquisition decisions. Making decisions involves balancing risk and reward. Individual objectives, risk tolerance, and market conditions dictate an appropriate allocation of assets. Sound analysis of individual opportunities, thoughtfully built into an operating or investment portfolio, should lead to satisfactory, long-term results.

The intrinsic value of a public or private business may be difficult to determine. Interest rates, demand, and other factors will change. Some years will be more profitable than others. Level-headedness in the face of adversity coupled with confidence in the systematic analysis of individual businesses provides intelligent investors with larger long-term opportunity.