It also counts Cincinnati money manager Bartlett Co. as part of its operations.Brinkley has put away 10 percent of his income since he left college.Valuation is defined as process of doing property valuation to find its approximate price in the current market of real estate.Not an easy thing to do on a second lieutenant’s pay in the early 1960s, nor as the first employee of the startup Mason & Co. a few years later.”In America, it pays to have economic optimism,” Brinkley said last week while visiting Cincinnati.”Owning quality companies for the long term has paid off – ignoring short-term fluctuations has really paid off,” he said.
You won’t find any market timers in the Forbes 400 (listing of the 400 richest people in the world).”Even Bill Gates, the head of Microsoft Corp., is a long-term investor, Brinkley said.Brinkley, who has been in the investment business for 37 years, is the chairman-elect of the Securities Industry Association, the trade group for brokers, dealers and other financial services companies.The greatest challenge facing brokerages today is managing customer expectations, Brinkley said.”The performance expectations are too great today.”We’ve been spoiled by the high returns investments have given in recent years, he said.
And too many of us investors have forgotten about having a diversified group of investments and allocating our assets across several classes so that all our eggs aren’t in the same basket, he said.Brinkley applauds the wide participation in the market today.”That’s what capitalism is all about,” he says. ”The government had done a terrific job of saying ‘It’s your Melbourne Property Valuers retirement and your responsibility’. ”But what many investors don’t realize is that the high returns of the last few years aren’t normal and that since April 1998 most stocks have been down, he said.
The great returns have come from a few big high-tech companies and the top 25 stocks in the S&P 500.”And that can’t go on forever,” he said.The secret to doing well financially is to pay yourself first every month by saving 10 percent of your income, invest regularly in good companies and other investments, ignore market fluctuations and let time and compounding work for you, Brinkley said.
As for finding quality companies, look for those with good management, a good business model and good products or services in an area of the economy that is growing.Pay attention to your investments – are the companies’ profits and customers increasing each year?Is management working for the shareholders?”If not, sell the stock,” he said.”Short term, I’m cautious, but long term I’m optimistic.”Donaldson Lufkin and Jenrette began covering Firstar Corp. last month.The brokerage acted the day after Firstar, formerly Star Banc Corp., closed on its stock acquisition of Mercantile Bancorporation Inc., the major St. Louis bank.