First Wilshire Securities Management Inc. is accepting new clients with a minimum initial investment of $1,000,000. A First Wilshire management account may be appropriate for the portion of an investor’s assets seeking exposure to smaller capitalization companies and willing to accept greater risk. Our clients are a diverse group of individuals and institutions from a wide array of backgrounds.

To request more information about opening an account, please call (626) 796-6622 x120, or email us.


Please consult our brochure, our ADV (both available on request) and your investment representative to fully understand our investment strategy before opening an account. When considering investing in stocks and investing with First Wilshire in particular, we caution investors about the following risks and considerations. We take these points very seriously and expect our investors to do so as well.

You Can Lose Everything – Investing in stocks is inherently risky and can result in complete loss of capital. While diversification and buying stocks with limited downside can limit this risk, any investment in stocks can go to zero. Consider the recent bankruptcies of GM, Circuit City and Lehman and the plunge of Citi and AIG.

Must Have a Long Term Outlook – First Wilshire’s strategy (and any good strategy in our view) is geared to long term investors. We do not put undue attention on daily price fluctuations and we do not attempt to time the ups and downs of the market. Large drops in the stock market often cause investors to sell at precisely the wrong time and buy back at higher levels. In our experience, trying to time the market usually results in returns far below the market averages. If an investment in a First Wilshire managed account is appropriate, it is strongly recommended that investors maintain their First Wilshire managed account for a minimum of three years. First Wilshire does not want to manage investor’s assets for less than three years and will not approve a new managed account if it is known that an investor intends to leave after a short period of time.

Diversify Across Asset Classes - A First Wilshire managed account is not considered appropriate for an individual’s or an entity’s entire portfolio. Modern Portfolio Theory suggests diversification across a range of asset classes.

Some of Our Investments Will Fail – Investing in stocks is highly uncertain and is akin to making bets. Rigorous research and buying discipline can improve the odds of success, but some companies will always fail. While we strive to pick good companies with limited downside risk, some have and will experience significant drops in value or a complete loss. Proper diversification and educated investments can improve an investor’s chances in the market while limiting downside risk.

Do Not Expect Historical Returns – Past results are no guarantee of future performance. We are not just saying this. Past results is only one piece of information to consider in selecting a manager. We do not invest to achieve a certain return; neither do we try to match our past returns. What we do is work hard to carry out the strategy that we believe will result in exemplary long term performance.

We Strictly Follow Our Strategy – At First Wilshire we insist on buying stocks that we truly believe to be good value, and will not bend to the trends of the market or whims of other investors. We do what we believe will accomplish this goal under any circumstances and do not take client requests to buy or sell specific stocks.

No Two Accounts Will Be Identical and Therefore Will Not Produce Exactly the Same Performance – Our analysts’ buy recommendations can change rapidly as stock prices fluctuate or we find new ideas. The timing of opening an account and subsequent cash flows can significantly affect the account’s composition. Smaller capitalization stocks have lower trading volume. When we do not have enough shares to allocate to all accounts, we use an algorithm that allocates shares based on cash and current holdings of that stock. At times we may allocate shares at random.

Smaller Companies Can Be Particularly Risky – In general, small-capitalization stocks are more risky than larger stocks due to lower trading liquidity, less available information and less financial resources than larger companies. First Wilshire’s analysts and portfolio managers rely to some extent on the integrity of company management, auditors, and the applicable regulators charged with oversight.

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