The world has become a riskier place.  In many ways, the U.S. economy has suffered its greatest setback since the Great Depression.  Traditional investment approaches, many quite sound historically, have nonetheless led to large losses for many investors.  Many banks have failed and some of the largest have needed government assistance to survive.  Lehman Brothers, an old-line investment firm founded in 1850, has failed and even Merrill Lynch has been forced into an awkward merger to survive.  A more liberal administration and Congress have thrown immense and unprecedented amounts of money into the economy in an effort to stop the decline.  Public debt has soared, housing has collapsed and the stock market plummeted.  These events have been duplicated around the world, creating a worldwide upheaval.

However, there have been opportunities amid the turmoil.  After bottoming in March, 2009, the market recovered sharply during the remainder of the year.  Certain natural resource and technology companies have had very good returns.  As often happens, crisis also brought opportunities.

In this time of risk opportunity, four individuals, Tom Bertaut, Chris Carrico, Bill Whitney and Forbes Watson, have formed Mississippi Investment Management Company, LLC (MIMCO).  We believe our individual and collective experience and skills can achieve superior investment results in an uncertain world.

The following core principles guide the investment strategy at MIMCO:

I.    The world is an uncertain place and risk is unavoidable, but risk can be managed.

II.    Government has become a major factor in determining investment outcomes; therefore, analysis of government actions is a necessary strategic tool in the investment process.

III.    The world has been changed by recent economic and market events.  Individuals, corporations, and governments will be more cautious in the future than they have been in the past.  The investment implications of this new caution are profound.

IV.    Investments must be tailored to an individual’s or entity’s objectives and risk tolerance.  A forty year old man will have a different risk tolerance than a seventy year old woman, just as saving for a child’s college education requires a different approach than building wealth for retirement, or to fund a trust or foundation.

V.    Under present conditions, there is no acceptable “buy and hold” investment strategy.  Just as “eternal vigilance is the price of liberty” it is also the price of investment success.  Recent market experiences have confirmed this.

VI.    Dividends matter.  Since forty percent of the long term return on stocks comes from dividends and their reinvestment, MIMCO will typically seek higher dividend yields for their return and portfolio stabilizing effect.

VII.    Taxes matter.  Since taxes are a direct reduction in wealth, every effort will be made to minimize them.

VIII.    The United States is not always the best market in which to find attractive, low risk opportunities.  Canada, Australia, Brazil and certain Asian countries, can offer excellent investment possibilities.

IX.    We are committed to the long-term success of our clients and will work and communicate with you every step of the way.

In order to provide our clients with the highest level of safety and service, we have engaged Pershing as custodian and clearing agent for client assets.  As a subsidiary of the Bank of New York Mellon, and the world’s largest provider of custodial services, Pershing’s credentials are impeccable.  Our clients can find comfort knowing their assets are in the institution Alexander Hamilton founded as America’s first bank in 1784.