Investing in your future now can pay big dividends later. Choosing the right firm makes a difference.
By StoryStudio on August 30, 2023
If you were given the choice between taking $1 million today or a single penny that doubles every day for 30 days, which would you choose? If you were like most people, you would choose the $1 million and, in doing so, you would have missed an opportunity worth many millions more. Why? Because most of us have a hard time understanding just how powerful compounding is. It’s so powerful in fact, that the doubling penny turns into more than $5 million in 30 days.
“Illustrations of the power of compounding, like the penny example, is a great way to show people the value of saving and doing so sooner rather than later. Many people struggle with deferred gratification for a number of reasons” says Drew Wilson, CFA®, Portfolio Manager at Fenimore Asset Management. Drew notes that investing is just another form of deferred gratification in which you forgo spending today so that you have more spending power down the road.
How Fenimore Asset Management helps protect and grows capital over the long term.
Fenimore specializes in assisting individuals and organizations to create a plan for long-term investment growth based on where they are in their financial journey. Here’s how they do it:
Whether you have $100 or $1 million, Fenimore provides differentiated investment solutions to fit your unique needs. Investors can begin investing in mutual funds with an initial investment as low as $100, and gradually increase their contributions over time. Fenimore also offers separately managed accounts; a portfolio of individual securities that they manage on behalf of an investor. Fenimore strives to build their investors wealth over time while providing downside mitigation through individual stock selection as well as fixed income offerings.
Fenimore Asset Management, manager of the FAM Funds, is a boutique investment management firm based in Albany and Cobleskill, NY serving investors regionally and across the country. For nearly 50 years, Fenimore has been delivering differentiated investment management solutions to investors of all ages.
“Through the power of compounding, even small amounts can grow into substantial sums over time,” Drew explains. “The key factor is to keep your money invested and let the returns potentially accumulate. The longer the compounding period, the more pronounced the effects become.” It’s not always easy for investors to do this. In volatile financial markets, many investors make emotional decisions, often leading them to sell their investments. Others who have been meaning to start investing delay to a time when the market seems more stable. Both are forms of timing the market. To portfolio managers like Drew, these are mistakes because they interrupt the compounding process and often reduce long term returns. “Emotional decisions are rarely good decisions; this is true in most things but especially true in investing,” says Drew.
Rather than pull your money out or delay investing, those of us in our 40s and 50s should be taking advantage of investing strategies like dollar-cost averaging, an investment approach that attempts to sidestep damaging emotional responses to investing by consistently contributing a fixed amount of money into their investments at regular intervals, regardless of market conditions.
This advice is not just for saving for retirement. It’s about addressing long-term financial goals, wealth accumulation, paying for college, vacations, property, and a holistic approach to financial health.
Fenimore fosters strong relationships through accessibility, collaboration, and communication. Investors don’t need an appointment or scheduled call to get the answers they’re searching for from their relationship manager; they can walk into Fenimore's Albany or Cobleskill office and speak with a relationship manager like Erin in person. If they do call, they’re met with a real person on the other end of the line who is there to support them every step of the way.
“We show a willingness to collaborate within our team to get our investors meaningful answers and solutions,” says Erin. “Plus, we have a direct line to the research team that selects the companies that go in an investor's investment portfolio.”
With more than 231 years of collective investment experience on the research team (as of June 1, 2023), Fenimore uses this firsthand knowledge and market-tested process to conduct independent, in-depth research. The research team analyzes the companies and management behind the investments to gain insights—all of which helps create value for its investors over the long term.
“Fenimore helps protect and grow wealth by investing in a few high-quality businesses that we believe can grow and produce attractive returns over time,” says Drew. “The cornerstone to our process is conducting extensive due diligence on any business in which we may invest. Our fieldwork includes meeting with management, customers, and suppliers as well as on-site visits. Even though we may only buy a portion of a company, we approach it as if we’re buying the whole business.”
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SPONSORED BY FENIMORE asset management
-Drew Wilson, CFA®, Portfolio Manager
“By staying invested, investors avoid the risk of making incorrect market timing decisions that could result in missed opportunities or losses. Timing the market is next to impossible. However, time in the market — staying invested over the long term — has historically been a more reliable strategy
for wealth accumulation.”
Getting started
Helping grow wealth and saving for the future
The Fenimore service difference
-Erin Luciano, Relationship Manager
“We have the desire to go above and beyond for clients because we understand how much a relationship matters. This is not a transactional business. It’s relationship-based; it’s
about building trust.”
“When we say our goal is to help investors by providing clarity when it comes to thinking about their long-term financial plans, this does not just mean investment accounts,” says Erin. “It means addressing beneficiaries, wills, helping our clients understand the importance of having their financial health in place long-term.”
Given the long-term benefits of compounding and the difficulty in timing the market, the answer to “When should I start investing?” is, “now.” It’s never too late to start investing in your future. The sooner you start, the sooner your investments can start to work for you and grow capital over the long term.
If you’re ready to get started, or looking to work with a new investment partner you can trust, contact Fenimore Asset Management today. The investment team at Fenimore Asset Management can help you get a plan in place to meet your financial goals.
Contact us today to arrange a meeting in one of our Albany or Cobleskill locations.
Judy and I are very happy with the Fenimore staff and the investment results!! THANK YOU.
- Don H.
Kevin Smith [Director of Private Client Services] is fantastic. He responds to all our inquiries very fast. He offers to meet as often as we would like and provides access to the investment teams as needed.
I have always had great advice and continued support
with all my financial goals.
Kevin [Director of Private Client Services] makes me feel like I could not have my life savings in a better place to see me through retirement.
Service continues at the same high level that I am used to for all the years I have been with Fenimore.
The Fenimore group is made up of true professionals. Not only are they good at WHAT they do - investment management, they are equally as good at HOW they do it. They communicate, are always available, and are timely in every respect.
Investor Testimonials
When it comes to investing, choosing the right firm can make all the difference. Scroll through the investor testimonials below and you’ll find what people appreciate about investing with Fenimore. It is more than their investing strategies, it’s the service, too.
Delivering service excellence
Part of Fenimore’s success can be linked to their personalized service and accessibility. These key attributes are why Fenimore has been a fixture in the Capital Region for nearly 50 years and has consistently held their own with larger Wall Street firms.
“The Fenimore Asset Management team is different,” says Erin Luciano, Relationship Manager at Fenimore. Her job is to help ensure Fenimore investors receive the highest level of service. “We have the desire to go above and beyond for investors because we understand how much a relationship matters. This is not a transactional business. It’s relationship-based; it’s about building trust.”
For illustrative purposes only
Testimonials may not be representative of the experience of other customers. Testimonials are no guarantee of future performance or success.
This sponsored article about the Firm’s advisory services has been published by Hearst StoryStudio (“Hearst”), a non-advisory client that provides various marketing services to Fenimore. Cash compensation was given in exchange for the publishing of this sponsored content. Due to Fenimore's relationship with Hearst, material conflicts of interest include but are not limited to a financial incentive to promote this sponsored StoryStudio article. These compensated endorsements are intended to objectively showcase the Firm and its services; however, it is important to understand that compensation may have influenced the content of this article therefore we encourage clients and prospective clients to independently research and assess the Firm’s investment offerings, taking into consideration their unique financial goals, risk tolerance, and investment preferences before making any investment decisions.