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P.O. Box 726
Manchester, NH 03105
(603) 627-9691
CASE Investments
INVESTOR EDUCATION

PROTECTING THE INVESTOR: BASICS
  • Money manager should not have custody of client assets.
  • Custodian should be independent of the money manager.
  • Independent custodian should be a well-recognized institution.
  • Checks should be made payable to the independent custodian – never to the money manager.
  • Monthly statements and trade confirmations should be prepared by the independent custodian, not by the money manager.
  • The investor should be receiving monthly statements and trade confirmations directly from the independent custodian, not from the money manager.
PROTECTING THE INVESTOR FROM INCOMPETENCE
  • Interview several money managers and ask the following question: Describe your investment decision-making process?
  • Ask the money manager to illustrate their decision-making process by showing you an actual valuation prepared by the money manager.
  • Randomly choose three publicly-traded companies. For each company, ask the money manager to take no more than two minutes to walk you through the company’s financial statements and show you specifically how he or she applies the framework of their decision-making process to each company.
  • When interviewing the money manager, bring someone with you who has business experience.
RECOMMENDED READING
  • Benjamin Graham and David L. Dodd. Security Analysis. First Edition. The McGraw Hill Companies, 1934. ISBN: 0-07-024496-0
  • Benjamin Graham. The Intelligent Investor. Fourth Revised Edition. Harper & Row Publishers, 1973. ISBN: 0-06-015547-7
  • Roger Lowenstein. When Genius Failed. Random House, 2000. ISBN: 0-375-75825-9