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|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, July 24, 2014
BY CLIFF HOCKLEY | OB GUEST CONTRIBUTOR
With the increasing retirements of Baby Boomers, a massive real estate shift has created a significant increase in demand for NNN properties. The result? Increased demand has triggered higher prices and lower yields.
Wednesday, July 02, 2014
BY JESSICA RIDGWAY | OB WEB EDITOR
Dress for Success Oregon promotes the economic independence of disadvantaged women by providing professional attire, a network of support and career development tools.
Friday, June 27, 2014
BY JASON NORRIS | OB BLOGGER
Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.
Monday, August 18, 2014
Portland is in the middle of another construction boom, with residential and office projects springing up downtown, in the Pearl and Old Town. OB Web Editor Jessica Ridgway documents the new wave.
Thursday, July 03, 2014
BY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS
The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.
Wednesday, July 09, 2014
BY LINDA BAKER | OB EDITOR
Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.
Friday, August 15, 2014
In this week's poll, we asked readers: "Who should pay for the troubled Cover Oregon website?" Here are the results.
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