Investment Strategy

 

Our experience helps investors participate in good markets and offers protection in bad markets

Income First Total Return Strategy ®

Northstar follows what we call our Income First Total Return Strategy®. The strategy is based on the time-tested theory that the current and future value of any investment is directly related to the cash flow it produces over its lifetime.  As  cash flow rises, the price generally follows.  Consequently, we focus on investing in businesses that provide us with cash flow, either in the form of stock dividends as equity investors or bond interest as debt investors.

We believe our Income First Strategy® offers investors several advantages:

  • Higher probability of building both wealth and income
  • Less volatile composition of returns
  • Cash flow that can serve as additional savings or a source of distributions
  • More control over your investment results

We operate two portfolio strategies

An Accumulation and a Distribution Strategy. These two strategies reflect the two primary objectives for individual investors. Generally, investors want to accumulate wealth, and later they want to distribute the returns on that wealth to support their lifestyle choices.

 

Accumulation Strategy Portfolio:

  • Designed for investors who are still accumulating wealth
  • Offers greater income and price appreciation opportunities
  • Focuses on compounding cash flow and capital contributions

Distribution Strategy Portfolio:

  • Designed for investors who are distributing or living off their wealth
  • Offers more consistent income and price appreciation opportunities
  • Focuses on using cash flow to meet distribution goals

 

The primary differences between the two strategies are the amounts allocated to our stock and bond portfolios, and how we handle the cash flow within the strategies. While we have recommended allocations between our stock and bond portfolios for each strategy, we are also able to customize allocations for a client’s unique risk profile and objectives.