What Are Large-Cap Stocks?

Fritz Mowery, a resident of Dallas, Texas, was the senior vice president and senior portfolio manager at Comerica Bank, where he managed over $12 billion in assets. He currently serves as president and chief investment officer at Mowery Capital Management, LLC. Fritz Mowery possesses over three decades of portfolio and asset management experience, with an equity portfolio consisting of mainly large-cap stocks.

Large-cap stocks are stocks of companies with value or market capitalization (the total value of a company's equity) of more than $10 billion. These stocks pose less risk compared to others. Also safe and stable, they pay reasonable dividends to their investors.

Examples of large-cap companies are Amazon, Apple, Walmart, Microsoft, and Facebook. While large-cap stocks are stable and safe, their stock prices do not grow rapidly like other smaller companies; thus, they may be unsuitable for some investors.

Big-cap companies are known for their transparency, making it easier for investors to evaluate public information about them. Large-cap stocks can be a valuable source of income when bond profits are low due to government activities to stimulate an economy. Furthermore, they usually out-perform the market towards the end of a business cycle expansion phase when an economy rises swiftly. 

An Overview of Asset Management

Fritz Mowery serves as president and chief investment officer at Mowery Capital Management, LLC, and was a former senior vice president/senior portfolio manager at Comerica Bank in Dallas, Texas. His equity portfolio management style supports growth at a reasonable price. With 33 years of experience, Fritz Mowery and his firm oversee clients' custodial accounts by providing asset management services.

An asset management process utilizes financial instruments to increase the value of invested assets over time. In the same vein, an asset manager is tasked with a mandate: to grow clients' investment portfolios.

Asset managers conduct extensive research using both micro and macro analytical tools before investing. The analysis may consist of interviews with company officials as well as statistical analysis of current market trends. Investment opportunities could be government financing such as sovereign bonds, or private sector financings like bond or equity purchases, real estate, mutual funds, and alternative investments.

Asset management has numerous benefits, including identifying, mitigating, and managing risks. It also enables a company or individual to keep tabs on all their assets, remove ghost assets in the firm, and guarantee correct amortization rates.

Strategies for Managing Investment Risks

Fritz Mowery is president of Mowery Capital Management, a Dallas-based, fee-only investment advisory firm. Fritz Mowery built his firm to adopt fundamental research in combination with technical and quantitative implementation as a strategy for managing investment risks.

Risk management is the process of identifying, analyzing, and mitigating uncertainties that come with investments. Investors expect to yield returns over time, but each investment has price fluctuations that investors cannot control. The consequence of inadequate risk management is the loss of funds. Before investing, investors should understand the business model of their company of interest and how to mitigate the risks in such an investment.

Every investor must develop a strategy. An essential part of investment risk management is understanding the purpose of the investment. Short-term and long-term investments have different risk-management routes. Diversifying investments helps investors spread their risk across platforms and reduces the probability of losing funds from one poor investment.

Investors must understand business correlation, the process of identifying businesses operating within the same field, and they must invest in companies that are oppositely or negatively correlated. Investing a specific amount of money monthly, otherwise known as dollar-cost averaging, and investing over time are other strategies that may help investors manage risks. 

A Look at the Book 21st Century Wealth

The president and chief investment officer at Texas-based Mowery Capital Management, Fritz Mowery has successfully managed client assets. Also a published author, Fritz Mowery co-authored a book with Robert Esperti and Renno Peterson titled 21st Century Wealth: Essential Financial Planning Principles.

21st Century Wealth was originally published by the National Charitable Initiative in 2000, and is the sixth book in the Esperti Peterson Institute Contributory Series. Over the course of 483 pages, the book explores specialized financial planning techniques and strategies that cover topics ranging from estate planning and college savings to insurance and retirement planning programs.

Advice in 21st Century Wealth stems from a nationwide, collaborative research project. The project involved more than 50 of the top financial professionals in the United States who provided feedback on pressing issues facing their clients and the financial advice they provided. Moreover, the book employs a question-and-answer format and understandable language that allows readers to implement financial strategies themselves.