Dave Smith, Founder and Chief Investment Officer
Who is Smith Investment Management?
Smith Investment Management was founded by Dave Smith. He has over 25 years of experience in managing the investments of Individuals, Families, Corporations and Non-Profits. Prior to founding his Investment Advisory Firm in 2006, “Dave” (David) worked at the firms of Dean Witter, Bank of America, and Edward Jones. He manages money in both traditional and non-traditional ways.
How is Smith Investment Management different?
- We embrace simplicity: we believe that some of the old and forgotten simple solutions of the past are the answers to today’s very complex problems. So we reject interesting ideas that are too complex. Complexity fails under pressure, brings an illusion of precision, and we would rather be approximately right than precisely wrong.
- We use Bank Trust Custody for investments: meaning that we have our clients investments held at a Bank, on their Trust Platform. Less than 1% of Investment Advisors and Brokers do this. We will not take on any business that wants to stay on a Brokerage Firm Platform long term. This is very important to us because we don’t want the risks of “Street Name” and “Rehypothocation” for our clients. Also, we do not believe in the false safety valve of “SIPC”, and “Excess SIPC”. If you are not aware of these risks, ask us for our report called “Risks From Holding Your Investments In a Brokerage Account”.
- We avoid packaged products: we seek to avoid using Mutual Funds, UIT’s, ETF’s. We seek to avoid the counter party risks with these packaged products…which include derivatives, buying on margin, and lending securities.
- We buy physical Gold and Silver: because of the risks to the US dollar, from US Government’s debt and liabilities, and the debasement of our currency.
- We don’t follow the crowd: we do not feel compelled to do what others are doing simply because a particular investment or strategy is popular. We know that we are neither right nor wrong if others disagree with our actions. If we are right, it is because our facts and reasoning are correct, and not because we are doing the popular thing.
Our Relationship Philosophy
- We seek always to treat our clients as we would want to be treated if our roles were reversed.
- We endeavor to speak the unvarnished truth as we understand it.
- We believe we are a fit for individuals and families that desire investment management that reflects today’s unique economic problems. We are also an excellent fit for corporate pension plans, endowments and charitable foundations that need to custody their investments on a Bank Trust Platform.
Strategy & Tactics
- Much of our investment focus is on Gold and Silver, Stocks with high intrinsic value, and Real Assets. We don’t like the long term direction of the US Dollar. The Federal Reserve has printed a tremendous number of “claim checks” (also known as US Dollars) against our countries assets. Long term we would rather own the assets than hold the “claim checks”.
- We seek to build portfolios that balance opportunities and risks.
- We believe earnings yields matter greatly. We seek to buy earnings as cheap as possible.
- We believe you can’t make a good deal with bad people. We look for management that exhibits integrity, intelligence and energy.
Our portfolios may include
Gold & Silver – Physical Gold and Physical Silver.
Cash - US, Canadian, and Australian Cash.
Bonds - US, Canadian, and Australian Bonds.
Stocks - Shares of Corporations that have high intrinsic value.
Real Assets – Vegetable & Grain Farmland, and Oil and Gas Royalty Trusts