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:
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:
Distribution Strategy Portfolio:
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.