Investments and Portfolio Structure
When this company was founded there was limited understanding of the asset allocation principals which were just then being promulgated by academic research, the results of which are now known as "Modern Portfolio Theory." That research and the literature that resulted led to the Nobel Prize in economics for the three scholars involved. From our inception we embraced this knowledge and have been guided by it ever since.
Modern Portfolio Theory, simply stated, calls for an allocation of one's invested funds among a variety of asset classes. The original research considered the relationship of investments in sub-classes of stocks, bonds, and cash to eventual total performance and risk. A conclusion drawn was that the overwhelming majority of a particular portfolio's performance over time at a given level of risk is due to the amount of allocation per asset in a given mix of asset classes and sub-classes. Accordingly, the scholars concluded that the selection of individual securities within an asset class has a much more limited impact on long-term performance than had been generally believed before.
Further research by academics and practitioners has strengthened our belief that including non-traditional portfolio asset classes has the potential to produce a better return for a given amount of risk. For example, Roger Gibson, CFP, who authored the tome Asset Allocation in 1990 included the real estate asset class in the portfolio analyses examples that he completed in conjunction with Ibbotson Associates, thereby attaining a higher yield but with lower risk in his studies.
While portfolio design and associated asset categories are important, GCC feels that it is essential also to find the finest managers available in any given asset class. This aspect is something the Modern Portfolio Theory researchers did not comment directly on in their published results. But we believe that if we successfully combine a creatively broadened asset allocation with exceptional managers in each asset class, an even better return may be attained. We follow this formula today, as we did originally, and feel that it provides an excellent value for our clientele.
So, having defined the asset classes in which to participate and the appropriate level, how do we select our group of managers and investment providers? This work is customized and proprietary, and utilizes our relationships nationwide with firms and managers that we hold in high esteem. You may read more about this in the next section titled "H. Beck & Greenbrier Capital, A Synergistic Interlock."
H. Beck & Greenbrier Capital,
A Synergistic Interlock
Employees of Greenbrier Capital Corporation who are securities registered hold those registrations through H. Beck, Inc. an independent FINRA and SEC Registered Broker/Dealer and an SEC Registered Investment Adviser. Accordingly, securities and investment advisory services offered by employees of Greenbrier Capital Corporation are only among those made available through H. Beck, Inc.
H. Beck, Inc. began in 1954 as the Estate Investment Company. Today, H. Beck is a leading Independent Broker/Dealer, and is registered to offer securities in all fifty states and is a member of FINRA, SIPC, MSRB, and NFA. H. Beck is also a Registered Investment Adviser, registered with the Securities and Exchange Commission.
H. Beck's mission is to offer the best investment opportunities available and execute the investment decisions of its clientele in a highly professional manner. H. Beck, Inc. is known for its independent thinking, its expertise in "due diligence" (financial services jargon for careful and detailed analysis) and for its relationships with carefully selected managers in the various asset classes.
Importantly, financial professionals working through H. Beck, Inc. as we do, never have to fit a client into a particular proprietary investment product or service, such as an underwriting of a stock, a house owned mutual fund, or the "deal du jour" because H. Beck, Inc. is never involved with such things. Once GCC determines client requirements in a given situation, the best available resources can be brought to bear for the benefit of the client and only the client. Please see the section of this website titled OUR ADVANTAGES which discusses this aspect in greater detail. It is quite relevant to your financial well being.