The primary objective for all accounts is to avoid any permanent (4 year) loss of purchasing power. The secondary objective is to maximize the cumulative rate of return earned over the duration of each client’s investment.
DPCM investors are discouraged from contributing funds they may need within four years. Consequently, DPCM focuses very little on mitigating short-term market price fluctuations and primarily focuses on avoiding permanent loss.
DPCM's adviser believes common stocks generally provide the best alternative to meet the objectives above. Potential common stock investments are restricted to the most conservatively financed, profitable and competitively dominant businesses in the world. Businesses DPCM consider also face a low threat of obsolescence and are run by honest and competent managers.
The market prices of the businesses meeting this criteria are compared against a conservative estimate of the cash they are capable of generating in the future to determine which stocks provide the most attractive long-term returns. DPCM portfolios consist of the businesses that DPCM's adviser would like to own a decade from now at today's market prices.
DPCM manages portfolios for investors by establishing an account in their name at TD Ameritrade wherein DPCM has discretionary trading authority. TD Ameritrade provides DPCM investors with online account access and deposit capability, monthly account statements and annual tax forms.