|| Print ||
|Articles - Jan/Feb 2012|
|Thursday, January 19, 2012|
Page 1 of 2
By Oakley Brooks
Patrick Becker Sr. is 70 years old now and slowed significantly by a stroke he suffered five years ago. But all one has to do is mention “The Letter” and his eyes light up and a wave of energy pulses across his elfin face. He is back in the fourth quarter of 1999.
“That was a tough time,” he says, softly. “The growth guys were shooting the lights out.” Everybody was winning big except Becker’s investment clients. That’s because Becker smelled a rat in most tech stocks, and he wouldn't have any part of them. He’s a value investor, sticking to companies with strong balance sheets, long-term fundamentals and cheap share prices: paper companies, gas conglomerates and machine-works outfits that were, in the late 1990s, so 1980s.
But meanwhile, his clients were going crazy on the sidelines of the boom, calling him old-fashioned on the phone and leaving Portland-based Becker Capital for the first time in the firm’s 24 years. The staff gave a unanimous vote of confidence to Becker’s approach during a soul-searching meeting that year, but Becker was losing sleep as he sat at his keyboard to tap out his final quarterly letter of 1999 to clients. What was keeping him up at night, he wrote, was the “fear that our clientele, one by one, will be drawn into the ever-growing feeding frenzy of market hype and speculation. In my judgment, a growing portion of the current market action is nothing more than a giant casino.” Whatever the pressure to roll the dice, Becker would not break. “In a period of euphoric speculation, we must stay true to our disciplines and use plain common sense,” he wrote.
Over the next 12 months, the Internet balloon hemorrhaged air and smashed to Earth, ruining legions of dotcoms and erasing an estimated $800 billion in value in the tech space. But Becker’s portfolio chugged along in the black in 2000 and 2001.
“We’re more proud of that moment than any other,” says 46-year-old Patrick Becker Jr., the company’s president.
Through the lost decade that followed, Becker has remained strong and steady, like the marathoner Pat Sr. once was. And its portfolio — now at $2.1 billion — has paid dividends for the individuals and institutional investors who stood by the company: Its investments earned 6.1% annually over the last 10 years, compared to 2.8% for the S&P 500.
The company’s approach plays out in deep and relentless research by Becker staff, which includes Ph.D.s and some of the more seasoned analysts picked up as banks and investment houses in Portland have downsized, merged and consolidated in recent years. Becker hosts each year 400 to 500 company managers and outside analysts at the firm’s Key Bank tower offices for briefings. Staff members pore over quantitative data looking for bargains in stock price multiples.
Thursday, December 11, 2014
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
We ask business and nonprofit leaders how they survive the season.
Wednesday, October 22, 2014
BY KIM MOORE
A conversation with Majd El-Azma, president and CEO of LifeWise Health Plan of Oregon, followed by the Healthcare Powerlist.
Thursday, December 11, 2014
There’s a fascinating article in the December issue of the Harvard Business Review about a profound power shift taking place in business and society. It’s a long read, but the gist revolves around the tension between “old power” and “new power” as a driver of transformation. Here’s an excerpt:
The authors, Henry Timms and Jeremy Heimans, don’t necessarily favor one form of power over another but merely outline how power is transitioning, and how companies can take advantage of these changes to strengthen their positions in the marketplace.
Our Powerbook issue might be viewed as a case study in the new-power transition. This annual book of lists provides information on leading businesses, nonprofits and universities in the state. Most of the featured companies are entrenched power players now pursuing more flexible and less hierarchical approaches to doing business. Law firms, for example, are adopting new technologies and fee structures to make legal services more accessible and affordable.
This month we also take a look at a controversial new U.S. Securities and Exchange Commission rule requiring public companies to disclose the median pay of workers, as well as the ratio between CEO and median-worker pay.
Part of the 2010 Dodd-Frank financial reform law, the rule will compel public companies to be more open about employee compensation, with the assumption that greater transparency will improve corporate performance and, perhaps, help address one of the major challenges of our time: income inequality.
New power is not only about strategy and tactics, the Harvard Business Review authors say. “The ultimate questions are ethical. The big question is whether new power can genuinely serve the common good and confront society’s most intractable problems.”
That sounds like a call to arms. Or a New Year’s resolution. Old power or new, the goals are the same: to be a force for positive change in the world. Happy 2015!
Friday, October 31, 2014
BY LINDA BAKER | OB EDITOR
Why are there so few transportation startups in Portland? The city’s leadership in bike, transit and pedestrian transportation has been well-documented. But that was then — when government and nonprofits paved the way for a new, less auto centric way of life.
Friday, October 24, 2014
How does your workplace stack up against competitors? How can you improve workplace practices to help recruit and retain employees? Find out by taking our 100 Best Companies to Work for in Oregon survey!
Saturday, December 13, 2014
Seven tidbits about the president and CEO of AKT Group.
Thursday, December 18, 2014
2014 was a year of wild contradictions, fast-paced growth and unexpected revelations.
|A Complex Portrait: Immigration, Jobs and the Economy|
|Woman of Steel|
|Kill the Meeting|
|Debate surrounding Washington-Oregon I5 span heats up|
|Watchdog group takes issue with timber company's 'green' label|
|Labor dispute at the ports slowing Christmas deliveries|
|Fed stresses 'patience' regarding interest rate|
|Obama to announce end of Cuba isolation|
|Energy prices drop cost of living in US by most since 2008|
|Russia's attempt to slow ruble freefall fails|
Is your business ready to join us in the call for action? This opening panel includes Oregon businesses who will discuss why they signed the Oregon Climate Declaration, the investments they are making to reduce carbon emissions, and how their actions are affecting their companies.
Get ready for two days of special events produced with the EPA, Portland Timbers and ISOS before and after the GoGreen Conference on October 16.
How sports tourism is driving economic growth and making cities across Oregon a better place to live.
Port of Morrow's business-ready attitude has a surprising global impact.
Through its support of the arts, the Cultural Trust is strengthening the business community.
Heed the morals of these seminal holiday stories in your everyday life.
Amy will practice in the firm's Business, Real Estate, and Tax practice groups.
While the Bend City Council ultimately upheld the approval which enables OSU-Cascades to move forward with the 10 acre site, it did also thoughtfully consider the nature of its code requirements, resident concerns and OSU-Cascade’s efforts and suggestions and crafted conditions of approval to address potential impacts of the site in the area.