Ferris, Baker Watts Inc. has never had a problem taking the path less traveled.
When other brokerage houses rushed to offer clients trading over the Internet, Ferris Baker Watts passed, opting to work with clients face to face.
When firms closed their municipal bond underwriting businesses, Ferris Baker Watts kept its open, though business has been cutthroat.
And as competitors began selling out to giant banks at high premiums, company officials didn't think twice, even though some employees could have cashed in big.
The firm may not be the biggest or flashiest brokerage house in the industry, but on Wednesday, it celebrates its 100th year in business -- a testament not only to management's ability, but to its will to survive even in the toughest times.
While the firm's style might seem a bit old-fashioned by today's standards, Ferris Baker Watts' managers make no apologies.
"We are not a firm made up of Albert Einsteins or Albert Schweitzers," said Louis J. Akers Jr., chief executive officer of the firm, which has headquarters in Baltimore and Washington. "We are just really trying to do a good job for our clients. Maybe that is not Wall Street, but that is Ferris Baker Watts."
Whether the firm will thrive another 100 years, let alone 10, is anybody's guess because regional brokerage firms face an onslaught of challenges.
Brokerages that have teamed with banks can deliver an array of financial products under a single umbrella, ranging from car loans to mutual funds to brokerage to investment banking services.
Large firms, such as Merrill Lynch & Co., Goldman Sachs Group Inc. and Morgan Stanley Dean Witter, have armies of brokers, strong name recognition, and can muscle into markets with well-financed advertising blitzes.
The top five brokerage firms account for 50 percent of all commission revenue, and the top 10 firms reap 70 percent of all underwriting business, said Amy S. Butte, an analyst at New York-based Bear Stearns & Co.
"I think it is tough because you really need economies of scale or some sort of specialty," said Anna Dopkin, a financial services analyst at T. Rowe Price Associates Inc. "In this business you need something special to attract customers to your shop, whether it be a star money manager or the ability to get your hands on some hot new issue."
Despite the challenges, business has never been better for the firm, which is privately held. Customers are streaming through its doors, and profit is at an all-time high, executives said.
