Personal Note from the Manager

In my view the economic policies pursued by the US government, in particular the Federal Reserve under Alan Greenspan, combined with global imbalances, which resulted in two thirds of the world supplying goods & services and one third buying them, to deliver the economic chaos we see today. 

In the face of such chaos the United States government has abandoned free market policies and indeed its belief in a market system, interfered with 'risk and return' which lay at the basis of a capitalist society, and in general has done everything in its power to prevent the current economic forces from delivering what is needed; and that is to have prices fall across the board, whether they be asset prices or goods & services prices. Why? so that people can afford to purchase goods and services (or assets) using primarily the incomes that they earn and without the excessive use of credit.

CIMCO's GUIDING PRINCIPLES

Prior to this correction prices had risen to such levels that they had disconnected from income levels in society. The only way people could reach these higher prices was to bridge the gap between income and prices by using credit. And lots of it. Especially when Alan Geenspan is providing it dirt cheap.

Now we have a credit crisis, high unemployment and lower incomes. With less credit and lower incomes it stands to reason that prices must eventually fall. The government seeking to avoid falling prices, or deflation, has prescribed more credit as the solution - the very thing that caused the problems in the first place.

However the past is the past and there is very little value in discussing economics at this point. What is of value is the future and each individuals wealth creation. I built the business of CIMCO with certain goals in mind and to follow a set of guiding principles that determine how to think about the art of investing.

CIMCO's goals together with its guiding principles provide the overlap and connection to the goals of our clients.

I have designed the business of CIMCO to guide clients through this recession, out of this recession and beyond.

CIMCO commences business at a time when I believe the field of investment management needs to return to the status of a profession and that independent professional investment advice is again, as it was in the past, a very valuable service. And a service that clearly distances itself from the large impersonal mutual fund companies that have failed to preserve investor's wealth. These mutual fund companies, and others in investment management, used very rigid, inflexible & simplistic ideas with regards to investment that prospered only when the markets were rising and completely failed when they fell.

                                                        

Learn more about our company and approach:

• Our services
• Our investment philosophy
• Sam Patel's background and qualifications
• Contact us to schedule an initial meeting and review