FIRM PROFILE & PHILOSOPHY

In Warren Buffett’s 2005 Letter to Shareholders, we were introduced to the “Gotrocks family - a clan that owned all of America’s businesses and that counterproductively attempted to increase its investment returns by paying ever-greater commissions and fees to ‘helpers”.

Not surprisingly in Buffett’s allegory, once it is discovered that the Gotrocks family is willing to pay for help, new sets of “helpers” continue to emerge promising to provide the solution to the diminishing returns the family is experiencing for ever-increasing fees—the root cause of the underperformance.

The story is illustrative of the dilemma that investors face today. There are a myriad of financial instruments and solutions available, making it increasingly difficult to manage one’s own finances. However, due to the inherent conflict of interest within most institutions regarding fee arrangements, it’s hard to know who is trustworthy.

To be able to start and operate an independent money management firm without the conflicts of interest endemic to most financial services institutions was one of the most compelling aspects of creating Zak Investment Management Company (ZIMCO). We want to be analogous to the “family doctor” that takes the time to get to know our clients in a holistic and multi-generational way.  We want each of our clients to know that we are available for them and that the only incentive that we have is their best interest. Removing the profit motive out of the equation is the only way that we think professionals can become “trusted advisers”.

We believe that we are uniquely positioned to move into this role because we have no profit incentive to steer clients in one direction or another with regard to different financial products, insurance solutions or where to borrow money. Unlike large comprehensive financial services firms that are “making a buck” off of you with each new product or service, at ZIMCO the only fee that we are receiving is related to investment management, which is very straightforward and measurable. In addition, we will make the same amount of money if we simply manage our clients’ portfolios or if we are the quarterback of their financial world.

We take our relationships with our clients extremely seriously and want to create a tight-knit network of client families. We think the best way to accomplish this is to put ourselves in the center of the relationship where we can help our clients interact with other professionals, including accountants, lawyers, insurance professionals and representatives from charitable organizations.  

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