Investment Philosophy

Selecting Stocks in Quality Companies With Greater Growth Potential Than The Competition Provides The Basis For Superior Investment Results.

Stock prices fluctuate, introducing an element of apparent risk that chases many investors into less rewarding bank deposits or mutual funds. Calculation of risk is an essential element in any investment. Our investment philosophy is further guided through enlightened selection of stocks combined with sensible diversification. Investment success develops through attractive risk to reward ratios.

In practice, investment portfolios are anchored with a core of large cap companies with proven international growth. Stocks of mid-cap companies with a sprinkling of small caps add catalysts for growth. United States based companies make up at least half the portfolios with smaller but essential representation from Europe and the faster developing economies in the rest of the world. Industry sectors represented in portfolios include manufacturing, technology, medical and biotech, consumer, energy, communications and finance.

Positions are usually taken with the intention of long-term holding with sales only if a company’s fundamentals change or if market conditions or individual tax considerations prompt selling. From time to time, positions are taken in companies involved in mergers or takeovers to take advantage of merger arbitrage premiums. Cash balances are often invested in higher yielding short-term bond funds pending allocations to higher growth targets.

Overall, professional investment managers realize that emotional stock market swings may prompt investors to sell at discouraging market lows and buy when stocks are cresting. Trimming to meet changing conditions is essential while keeping the course leads to investment success.