Frequently Asked Questions
Find out the answers to some of our frequently asked questions or ask a question of your own below. Or call CORDA at 855.439.0665 for immediate, personalized assistance.
We partner with a number of seasoned professionals. Learn more about our Estate Planning Services.
You can view and download it here: Form ADV Part 2A Disclosure Brochure
You can view and download it here: Form CRS
Yes. We are long-term investors; generally, our ownership in a company will last for years, not months or days. We want to drive results over time by owning businesses that pay dividends and, in most cases, have a history of raising those dividends. Both long-term capital gains and dividend income are taxed at a lower rate than ordinary income.
We mitigate risk primarily at the time of purchase. We attempt to buy at a discount as opposed to chasing shares and paying a premium. As value investors, we seek out-of-favor and temporarily mispriced securities that have already declined in price. If our timing is correct, some of the price risk is taken out of the equation. We also control the amount and/or the percentage of a portfolio invested in any one specific holding. If something goes wrong for one of the businesses, the overall downside risk to the whole portfolio is limited. There are numerous ways to hedge a portfolio. As conditions have warranted, we have utilized a variety of securities and tools that allow us to increase protection against downside risk.
Trading for trading’s sake is kept to a minimum here at CORDA. We take a long-term view, ideally holding a business for a few years, reaping the dividends along the way. If the shares were purchased appropriately, capital appreciation will follow. We are active and vigilant, monitoring our holdings daily, but not flipping securities in the short-term.
Whether you are searching for growth or income, dividends are important because they have accounted for over 40% of the market’s total return since the 1920’s.
As we build a client portfolio, we strive to be 2 – 2.5 times the dividend of the S&P 500. We prefer to own businesses which pay between a 3% – 6% dividend yield in today’s market environment. The sustainability and ability to grow the dividend over time are two factors we strongly consider when making an investment.
(Please note that dividends are not guaranteed and may fluctuate.)
A client portfolio will generally consist of 25-30 individual businesses.
A client portfolio will generally consist of individual stocks. However, when the fixed income market looks attractive, a client portfolio may also have exposure to individual bonds.
CORDA does not sell products. We prefer to use individual stocks and/or bonds to build a portfolio. On occasion, we will use other securities, such as Exchange Traded Funds, for smaller accounts or for additional diversification.
Yes. We use independent, third-party custodians to provide full transparency to our clients. These custodians also provide online access, monthly statements and year-end reporting. You can have peace of mind that your money is safe.
Our fee is 1% annually on the first $2 million, .75% on the next $3 million, and .10% over $5 million. Please see our ADV.
Yes. CORDA is registered with the Securities and Exchange Commission. As an RIA, we adhere to the fiduciary standard of care set by the SEC which requires us to act in our clients’ best interests. Broker-dealers are only required to recommend suitable investments.
Yes. CORDA was recently named to Barron’s Top 1,200 Financial Advisors List for 2018 and the Forbes Top Wealth Advisors List as well.
Yes. We do our own independent research, free from the noise of Wall Street and investment banks.
We serve families all over the country.
CORDA takes a thorough approach to understanding your needs and objectives. We can customize our offering based on your situation. Every client has different goals and priorities. Sometimes the need is for retirement income; other times it may be for college education expenses or philanthropic gifting. Whatever the need, we take the time to get to know you so that we can build a portfolio that is right for you and your family.
CORDA was established in 1999.
Yes, our team recognizes the extremely vital impact that environmental, social, and governance (ESG) issues have on the long-term financial performance and competitive position of a business. We integrate careful analysis of a company’s specific ESG attributes to identify those to have sustainable business models that will allow them to be successful over the long run.
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