Annual Letters

January 15, 2012

Dear Friend and Personal Investment Management Client:

At this annual writing, I would like to call your attention to two important matters. Your assistance will enable our professional and experienced associates to serve you expeditiously:

  1. During every calendar year, personal tax issues arise for some of our clients; namely, capital gains and losses which affect your overall income tax liability. As we are very tax-sensitive in our portfolio management activities, you would be well-advised to call such personal matters to our attention as early in the calendar year as possible, so we can plan to achieve the most favorable tax outcome for you.
  2. For those clients who are required to take IRS-mandated annual “Required Minimum Distributions,” please notify us in writing as to the distribution amount early in the calendar year. We will then have sufficient time to achieve a more favorable distribution for you (i.e., when stock prices are high, less shares are required for distribution). Thank you for your cooperation.

2011 was a volatile and perplexing year for stock market prices. The U.S. stock market responded sensitively to every twist and turn of the Euro zone’s economic and debt problems, to the Middle East upheavals’ impact on oil prices as well as the natural disaster that occurred in Japan. Volatility in U.S. stock prices last year was exhibited by the 24% swing between the May Dow Jones Industrial Average Index High and its low in October. The Dow’s May high was about 11% above the start/beginning of 2011; yet by year-end this index only gained 5.5%.


In light of the volatile environment we have encountered over the past few years, we have structured our portfolio mainly with well-established, nationally recognized and financially-healthy companies. Such companies can continue to grow even in uncertain economies and volatile markets. This is reflected by dividend increases declared in 2011 by seven of our fifteen portfolio investments. By sharing their company’s success with stockholders, these corporate managers are expressing their confidence in the future prospects for their companies – our investments.

Our portfolio activities took advantage of the 2011 stock price volatility. On the downswings, we accumulated stocks at attractive prices for longer-term appreciation. The companies we chose are well-known, industry leaders and in good financial health. We believe they will contribute to the long-term appreciation prospects of our stock portfolio. Even in this volatile year, your investment manager was able to take profits where they were deemed timely and advantageous to do so. Moreover, the dividend increases experienced by our portfolio indicate the positive long-term outlook for these companies.

We want to applaud those clients who took the opportunity to add to their investment when stock prices were down during the year. Averaging and investing during the “down market” has resulted in lifting their portfolio value as the market recovered.

At the start of 2012, I and my associates want to express our appreciation for your continued confidence in us and for your patronage. We continue to be dedicated and committed to providing you with creative investment research and management service.

Cordially yours,

e magnus oppenheim signature

E. Magnus Oppenheim

simeon oppenheim

Simeon S. Oppenheim

EMO: ld


P.S. Our firm has experience in Trust and Estate Administration. You will find as clients that our rates are competitive. If this is relevant to you, we invite you to contact us.