Michael F. Absher, Jr., CIMA ®
Managing Director -Investments
Senior PIM Portfolio Manager
Mike has been in the securities industry and with Wells Fargo Advisors, formerly Wachovia Securities, LLC and A.G. Edwards, since 1996. He holds a Bachelor of Science degree in Economics from North Carolina State University. He is currently a Managing Director/Investment Officer and a Senior PIM Portfolio Manager.
As a Financial Advisor who holds the Certified Investment Management Analyst (CIMA®) designation, Mike is dedicated to providing a higher standard of excellence and adheres to the professional code of the Investment Management Consultants Association (IMCA®). IMCA® granted Mike his professional designation after completing the CIMA® educational requirements held at the University of Pennsylvania’s Wharton School of Business. Mike focuses on helping clients with their portfolio construction, investment strategies, investment manager selection, discretionary equity portfolio management and wealth transfer strategies.
Our core belief is that wealth is created over time by investing in high quality businesses and participating in the long-term growth of those businesses rather than attempting to time the market. While past performance should not be considered an indication of future performance, history has shown a clear correlation between the performance of a company’s stock and the growth of that company’s underlying earnings over longer periods of time. Our philosophy is built primarily around quality characteristics with the intention to be a very long term investor in each company.
We employ a value methodology for adding new companies and also for reducing existing positions as a way to reduce volatility for our clients. There are several characteristics or qualities that we desire in our holdings, but each holding may or may not meet each of these criteria:
- A company with a history of producing predictable free cash flow that management can use to buy back shares of stock, pay dividends, or reinvest into the business for future growth. Our belief is that a history of free cash flow generation is a good indicator of a higher quality business.
- A company with a premium position in their industry or sector that can be measured by higher profit margins or market share than their relative competitors. We seek to own the best companies that we can for our clients regardless of market cap or geographic domicile. Please note that our view of best is not meant as a synonym for largest or fastest growing. We seek to own companies that are more conservative and higher quality with the belief that those investments can be held longer and will help reduce volatility during market declines.
- A company with a history of increasing dividends annually over a substantial period of time. Companies that have proven capable of increasing their dividends annually over multiple decades were able to adapt and prosper in many different economic environments. Our belief is that they may be more likely to do so in the future as well.
- A company with a more conservative balance sheet than its peer group. Leverage can accelerate the growth of a company during prosperous times, but it has also proven a dangerous element for companies during unexpected economic downturns. By seeking companies with less leverage, we believe that we will be exposed to fewer large losses during a decline.
- A company with significant stock ownership by its management team and board of directors.
- A company with an attractive valuation as measured by free cash flow yield. The free cash flow yield as we use it is measured by a company’s free cash flow divided by enterprise value.
- A company with strong returns on invested capital.
The PIM program is not designed for excessively traded or inactive accounts, and may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.
Dividends are not guaranteed and are subject to change or elimination.
S&P 500 Index: The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market value weighted index with each stock's weight in the Index proportionate to its market value. Inde=ices are unavailable for direct purchase
Fundamental Analysis: A method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other qualitative and quantitative factors