Sanibel Captiva Trust Company hosts investment seminar
The Sanibel Captiva Trust Company hosted their annual investment seminar on Nov. 16 at The Sanctuary Golf & Tennis Clubhouse with featured speakers Pat Dorsey and Timothy Vick.
CEO and founder Al Hanser welcomed the guests and presented the high-profile speakers: Dorsey, the Director of Equity Research at Morningstar and a financial commentator for FOX’s Bulls & Bears, and Vick, senior portfolio manager for Sanibel Captiva Trust Company and author of “How To Pick Stocks Like Warren Buffett.”
Dorsey’s talk described how successful firms create an “economic moat” around their businesses to generate high returns on capital over long periods of time. He mentioned Berkshire Hathaway’s 2009 acquisition of Burlington Northern Santa Fe as a classic example: Berkshire CEO Warren Buffett viewed the 32,000 route miles of track as a bar to entry against competitors. It is easier, said Dorsey, for a company to create the next Croc or Crispy Kreme than put down thousands of miles of rails.
Dorsey noted the varied sources of economic moats. There is the power of a brand name such as Tiffany of Disney; the customer switching costs that enables companies such as Oracle to keep their clients; the network effect of a company such as VISA, which allows them to be one of the select credit cards accepted at retail outlets; and the economies of scale employed by UPS and Intel.
Vick talked about the value investing strategy he uses as a portfolio manager for the Sanibel Captiva Trust Company.
“Market timing doesn’t get you to your goals,” he said. “Neither do trial-and-error investing or trading programs.”
Vick seeks to purchase blue chip companies with capable management at an attractive price and hold the stock until it rises to or above its intrinsic value.
To make his case for a disciplined and patient approach to investing, he profiled some of the great American companies who have rewarded shareholders one generation after another. ExxonMobil, the world’s largest publicly traded company and the successor of Standard Oil, has been returning profits since John D. Rockefeller created the firm in Cleveland, Ohio in the 1800s. Disney has increased in value by 12.2 percent per year for the last 44 years while Walgreens’ stock has risen 422-fold since 1959.
Sanibel Captiva Trust Company President Terry Igo opened the floor for questions after the presentations. The topics included quantitative easing, emerging markets and the price of gold. Chief Investing Officer Richard Pyle and Senior Portfolio Manager James Young joined Dorsey and Vick in fielding questions.
“It was very informative and the speakers were well qualified,” said Sanibel resident Richard Hopkins. “It reminds us of some of the good basics of proper investing techniques.”
The Sanibel Captiva Trust Company is a state-chartered independent trust company regulated by the Florida Office of Financial Institutions. They provide wealth management services including investment management, trust administration, and financial counseling to individuals, families, businesses, non-profit organizations and endowment funds.