Private Wealth Management
We, at Giverny Capital believe that, in the long run, the performance of an equity portfolio is linked to the performance of the underlying companies. So we carefully select 20 or so outstanding businesses that share these characteristics:
- The company is profitable and has low levels of debt
- The company has a significant and sustainable competitive advantage
- The company has a long-term growth potential that is higher than average
- The company’s management is honest, competent and dedicated to shareholders
- The company’s stock price is undervalued compared to the intrinsic value of the business
We want to help our clients achieve their financial goals in a transparent and secure environment. Our vision is :
- To own outstanding companies
- To own these companies for an average of five years
- To have an annualized return of 5% better than the indexes
- To minimize capital gain taxes
- To offer great services to our clients
- To charge low fees to our clients.
Giverny Capital is well know for its integrity and transparency. Our "formula" is simple: we treat our clients the way we would want to be treated if our positions were reversed.
- The clients' portfolios are modeled on the Rochon portfolio which is the personal portfolio of Francois Rochon. So all clients are in the "same boat" as our portfolio manager.
- Since our revenues are linked to the value of your capital, we don't profit from a high level of transactions. Our revenues increase only when your capital increases.
- We set up annual meeting where all our clients are welcome and can ask any question they have on their mind.
- Since we treat our clients like co-shareholders, we use the term "partners" to designate them.
We use an independant custodian with Transparency and Security.
At Giverny Capital, we have a simple, personnalized, low cost and secured way of running the management operation. The stock selection and transaction process are done by the money manager, Giverny Capital.
On the other hand, client assets are managed through a personal account in their own name at our custodian, National Bank Correspondent Network (NBCN). Giverny Capital has discretion to trade on client's accounts through our custodian (NBCN) but does not have direct access to clients' assets.
Benefits for our partners
- Your investments are managed through an individual account to your name, at NBCN.
- There are no custodian fees, no entry fees nor exit fees.
- You can keep track of which securities you own, bought or sold (you receive statements from NBCN).
- You can have an Internet access to follow your portfolios.
- NBCN issues all income taxes annual forms.
- Since shares are in your name, you pay taxes on capital gains only when your own shares are sold (at a profit).
- Every month, a statement is sent also by Giverny Capital with the list of securities, gains on each one and the total performance of the portfolio (in absolute terms and compared with a benchmark).
- Our management fees are low and are reduced with the level of capital under management. The more you have with us, the lower the ratio of management fees.
- Our quarterly and annual letters contain detailed analyses on the companies we all own !
- At any moment, you can call our firm for any question you may have on your portfolio.