Founding Principles
Caldwell Securities was founded on three basic principles aimed at containing risk and ensuring clients receive unbiased investment advice.
We Do Not Believe Individual Investors Should Borrow To Buy Securities
Borrowing money to buy securities makes time the enemy and adds emotional pressure to investment decisions. This is in direct contrast to our beliefs on how to invest successfully: make time work for you and quell emotions before making investment decisions. Standing behind our beliefs, we do not offer margin accounts to our clients.
Our Fixed Income Portfolios Use Only Government Guaranteed Bonds
We believe that non-guaranteed fixed income securities, such as corporate bonds and asset backed commercial paper, do not offer enough additional return to compensate for significantly increased credit risk. By owning only government guaranteed bonds, credit risk, or the risk the borrower is unable to repay the loan, is essentially eliminated from our client's accounts.
We Have Only One Client Category - The Investor
To ensure we stay true to our goal of making our investors our first and only priority, we remove possible conflicts of interest. The result is that we are unbiased in the securities we select and recommend.
We are not corporate financiers
Rather than helping companies find investors, we focus on helping our clients find the best companies in which to invest.
We do not participate in new issue underwriting
We do not need to worry about underwriting commitments, nor are we conflicted by participation-based underwriting revenue.
No Principal Trading
We do not partake in principal trading; that is, buying and selling stocks for our own account, using our own capital. We only act as an agent trying to get the best price on behalf of our clients. This avoids an immense conflict of interest by allowing impartial advice to be given without interference from the firm's own capital commitments.