Martin "Marty” Sass and Ari Sass certainly are a father-son team of an investment management firm in Manhattan. Marty started M.D. Sass in his basement apartment over 40 years back, and today Marty and affiliates employ a lot more than 80 people and manage $7.5 billion for Fortune 500 companies and wealthy individuals. Marty takes an unconventional method of investing, pursuing targeted opportunities versus broad diversification of assets. Here are several insights that Marty and Ari shared about their success:
How does one go from zero clients 43 years back to an investment firm that garners top-tier investment performance? Be yourself, even if this means being truly a contrarian.
Marty described "the herd instinct" that lots of investment managers follow, which is to purchase index funds, exchange traded funds and government bonds. He believes these investments will be the wrong direction if you wish to attain superior results, but that that lots of investment management companies are content with producing mediocre results. Marty believes that his forensic research connection with companies is what sets him apart.
"I’ve learned over-all these years that concentrating on companies that you truly know well with strong management, buying them at a substantial discount from their intrinsic value, and concentrating on just a few companies that meet that stringent criteria, is really safer and produces superior returns with less risk,” he said. "It’s safer than wide diversification."
Marty didn’t build the business predicated on the traditional wisdom and has achieved results well above market benchmarks. It’s his secret for going from a start-up without money no contacts on Wall Street, to success. Ari is fully up to speed with his dad’s method of being truly a contrarian in this industry.
"The firm and its own investment strategies have weathered many different economic cycles and that experience sets us aside from many peers," Ari explained.
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Marty extends his unconventional solutions to the world of philanthropy. He’s focused on what he and others make reference to as "entrepreneurial philanthropy." Donations directly support the reason, rather than to cover overhead expenses. For instance, he started the M.D. Sass Investment Academy, an undergraduate student run hedge fund, at Brooklyn College.
Through this program, students have the potential to make money and gain experience through investing and co-managing the program’s hedge fund portfolio of securities. It’s Marty’s way to provide back again to economically disadvantaged students at his alma mater, a few of whom have a problem meeting tuition costs and reside in public housing projects. All monies go to the fund.
Marty and Ari also apply that philosophy to The SASS Foundation for Medical Research, making certain the monies they offer to organizations directly support the task, rather than overhead costs.
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Ari didn’t start out doing work for Marty in the family business. He launched entertainment and media companies that centered on internet marketing and music distribution. He became an effective entrepreneur in his own right, and finally sold one of is own companies to Warner Music.
Today, Ari may be the executive vice president of the business enterprise started by his father. When he entered the business enterprise he took a humble method of gain the trust of both his father and the customers. Ari explained, "Investment management is a people business. It had been important for me to obtain the proper training, face to face, and really learn the business enterprise first. I spent lots of time learning the business enterprise and the investment management process."
Marty couldn’t become more very happy to have his son work alongside him.
"It’s taken years of working together, to build up confidence in one another and in ourselves,” Marty said. "Ari has contributed in lots of ways. He is an excellent analyst/money manager, a positive influence with clients and employees, and supervises various facet of our business."
Marty views Ari’s entrepreneurial experiences as an excellent asset to the business enterprise today. Ari believes that running his own companies helped him turn into a better analyst.
Marty and Ari haven’t any doubts that is a business which can be used in future generations. Ari shared, "That is a business which has long-term sustainability and a long-term future that may transcend generations."
Their advice to others creating a family business is persevere, have the proper motivation, rather than, ever, ever, quit.
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