Important Disclosures
Check Capital Management Inc. (“CCM”) is an SEC registered investment adviser located in Costa Mesa, California. CCM and its representatives are in compliance with the current filing requirements imposed upon SEC registered investment advisers by those states in which CCM maintains clients. CCM may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. CCM’s web site is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of CCM’s web site on the Internet should not be construed by any consumer and/or prospective client as CCM’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by CCM with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of CCM, please contact the SEC or the state securities regulators for those states in which CCM maintains a notice filing. CCM will provide all prospective clients with a copy of our current Form ADV, Part II (“Brochure”) prior to commencing an Advisory relationship. A written copy of CCM’s current Brochure discussing CCM’s business operations, services, and fees is available from CCM upon written request. However, at anytime, you can view an electronic copy of our current Brochure by clicking here. CCM does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to CCM’s web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by CCM), will be profitable or equal any historical performance level(s).
Certain portions of CCM’s web site (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, CCM (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from CCM, or from any other investment professional. CCM is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.
CCM is not affiliated with Facebook, Twitter, LinkedIn, or other social media websites and we have no control over how third-party sites use the information you share. Please remember that you should never communicate any personal or account information through social media and it is important to familiarize yourself with their respective privacy and security policies.
Each client and prospective client agrees, as a condition precedent to his/her/its access to CCM’s web site, to release and hold harmless CCM, its officers, directors, owners, employees and agents from any and all adverse consequences resulting from any of his/her/its actions and/or omissions which are independent of his/her/its receipt of personalized individual advice from CCM.
Testimonial Disclosures
The testimonials on this website are from actual CCM clients. No compensation was paid or offered by CCM to the client. Keeping in mind that no two clients’ situations or experiences are exactly alike, the testimonials should not be construed as an endorsement of CCM by any of its other past or current clients, nor any assurance that CCM may be able to help any client achieve the same satisfactory results. To the contrary, there can be no assurance that a client or prospective client will experience a certain level of results or satisfaction if CCM is engaged, or continues to be engaged, to provide investment advisory services.
Awards and Rankings Disclosures
Please note: CCM is unaware of any undisclosed facts that could potentially invalidate the appropriateness of the rankings and awards listed below. By virtue of disclosing these rankings and awards, CCM is disclosing favorable ratings (to the extent that CCM is ranked above other advisors) and unfavorable ratings (to the extent that CCM is ranked below other advisors).
The rankings and/or awards listed may not be representative of any one client’s experience because of the way in which the rankings and awards are calculated. The rankings and awards are independently granted. The rankings and awards are absolutely not indicative of CCM’ future performance, or any future performance pertaining to its clients’ investments.
These rankings and awards or any other recognition by unaffiliated rating services and/or publications should not be construed as a guarantee that a client will experience a certain level of results or satisfaction if CCM is engaged, nor should it be construed as a current or past endorsement by any of its clients.
CNBC FA 100 (2019/2020/2021/2022)
The CNBC FA 100 celebrates the advisory firms that top the list when it comes to offering a comprehensive planning and financial service that helps clients navigate through their complex financial life.
The CNBC rankings are based on data culled from thousands of advisory firms and provided by AccuPoint Solutions. Factors included in the rankings were disclosures, years in business, average account size, total accounts under management, number of investment advisors, the ratio of investment advisors to total number of employees and discretionary assets under management and total AUM. Each section was weighted according to specific criteria created by CNBC and AccuPoint.
Neither CCM nor any other participating advisers paid a fee to be eligible for the CNBC FA 100 ranking.
Additional information about the methodology behind the CNBC FA 100 is available here.
Top 100 Independent Wealth Advisors – Barron’s (2018/2019/2020/2021/2022/2023)
Barron’s is a registered trademark of Dow Jones & Company, L.P. All rights reserved. Barron’s bases its “America’s Top 100 Independent Financial Advisors” rankings upon data provided by individual advisers and their firms, including submissions by CCM. Barron’s confirms that data via regulatory databases, cross-checks with securities firms and conversations with individual advisers.
The rankings reflect “the volume of assets overseen by the advisors and their teams, revenues generated for the firms and the quality of the advisors’ practices.” The scoring system assigns a top score of 100 and rates the rest by comparing them with the winner. A ranking of “N” denotes an advisor who is new to the list. The formula Barron’s uses to rank advisers is proprietary. It has three major components: assets managed, revenue produced and quality of practice. Investment returns are not a component of the rankings because an advisor’s returns are dictated largely by the risk tolerance of clients. The quality-of-practice component includes an evaluation of each advisor’s regulatory record.
Neither CCM nor any other participating advisers paid a fee to be eligible for the “America’s Top 100 Independent Financial Advisors” rankings. Barron’s does not publish, nor is CCM aware of the percentage of other advisers that received the applicable rankings.
Additional information about Barron’s “America’s Top 100 Independent Financial Advisors” is available here.
FT 300: Top Registered Investment Advisers – Financial Times (2018)
Research for the award was conducted on behalf of the Financial Times by Ignites Research, a Financial Times sister publication (collectively, “FT”). An initial pool of candidates was identified by examining the database of RIAs registered with the US Securities and Exchange Commission and select those that reported more than $300 million in assets under management.
The criteria used to select firms for inclusion in the final ranking, and to determine each firm’s placement in the final rankings, were: (1) assets under management; (2) growth rate of assets under management; (3) firm years in existence; (4) compliance record and disciplinary history; (5) industry certifications and designations; and (6) online accessibility. Assets under management was weighted to account for approximately 70-75 percent of each adviser’s final score. FT also placed caps on the number of advisers from any particular state, distributed roughly in accordance with the distribution of millionaires across the country.
Neither CCM nor any other participating advisers paid a fee to be eligible for the Financial Times Top 300 ranking. The FT ranking is comprised of the top 300 advisers out of approximately 2,000 qualified firms and 760 responding firms.
Additional information about the methodology behind the Financial Times Top 300 ranking is available here. The full list is available here.
Newsletter Disclosures
GENERAL BACKGROUND: Check Capital Management Inc. (“Check Capital”) has been registered with the SEC as an investment adviser since early 1987.
MANAGEMENT FEES: Performance results are shown net of a 1% annual management fee, as well as net of an annual 10%-of-profits fee (as further described in Check Capital’s Form ADV Part 2A).
INVESTMENT OBJECTIVES OF THE STRATEGY: The investment objective is long-term appreciation of capital. The Representative Account invests in what Check Capital believes are durable growth companies and are often known as “blue chips.” The businesses are usually large with annual profits in excess of $200 million. As a value-oriented investor, Check Capital attempts to obtain more in business value than what is paid in stock price. When fully invested, the Representative account typically owns 15-20 stocks.
S&P 500 INDEX: We often make reference the S&P 500, which is a stock market index based on the market capitalizations of 500 leading companies publicly traded in the U.S. stock market, as determined by Standard & Poor's. Unless otherwise noted, index returns reflect the reinvestment of income dividends and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. Investors may not make direct investments into any index.
MATERIAL MARKET AND ECONOMIC CONDITIONS: Over the very long-term, a stock-market index tends to rise inline with the gain in the earnings of the companies that comprise the index. While this is the case, over shorter periods stock prices and earnings often don’t move together. Since 1986, the stock market at times has experienced significant declines, most notably in 1987, 2000-2002, 2008 and 2020. It is important to recognize that market returns following periods of distress can often be high. That occurred after the financial crisis of 2008 and after the 2020 decline related to the coronavirus. Check Capital does not believe that there is an Index that invests using the style of the Representative Account. However, the Representive Account holds stocks largely in the S&P 500 Index and the volatility of the Representative Account and the S&P 500 has been similar. It is believed that market conditions, as represented by S&P 500, have an effect on the Representative Account’s returns, especially over the long-term.
IMPORTANT DISCLOSURES AND RISK: Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk and there can be no assurance that any specific investment will be profitable. Check Capital does not make any representation that the Quality Growth strategy will achieve future returns similar to those shown on page 3. There is also no assurance that a portfolio will achieve its investment objective. Information provided herein from third parties is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Individual returns may vary substantially from those presented due to differences in the timing of contributions and withdrawals, account start dates, and actual fees paid. This newsletter does not constitute an offer to sell, or a solicitation of any offer to buy or sell any securities. Any such offer will be made by means of disclosure documents and an investment management agreement. Check Capital is neither a law firm, nor a certified public accounting firm, and no portion of the content should be construed as legal or accounting advice. The newsletter may occasionally refer to individual trades; Check Capital provides a listing of prior recommendations upon request. The information contained herein is based on internal research and does not purport to be statements of all material facts related to the securities mentioned. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Our views and opinions regarding the investment prospects of portfolio holdings may change without notice. Actual results may differ materially from those we anticipate.
PLEASE FURTHER NOTE: No portion of the newsletter content serves as the receipt of, or as a substitute for, personalized investment advice from Check Capital, and there has been no determination by Check Capital that the Account or any other portion of the newsletter content, including any specific security (or combination of securities) within the Quality Growth Account or The Quality Growth 100 is suitable or appropriate for any specific individual investor’s financial situation, risk tolerance, or investment objective. A copy of the Check Capital’s current written disclosure Brochure discussing our advisory services and fees is available at www.checkcapital.com or upon request. If you are a Check Capital client, please contact us if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us to the contrary, we shall continue to provide services as we do currently. Please advise us if you have not been receiving account statements (at least quarterly) from the account custodian. Check Capital's President and Chief Investment Officer, Steven Check, remains available to address any questions at scheck@checkcapital.com.