Investment Style

Equities (stocks)

Our guiding principle is that significant wealth is created by long-term investment in securities of companies with strong competitive positions, powerful cash-generating capacity, solid finances, competent and honest management, and attractive growth opportunities.

We do not subscribe to popular strategies based on short-term trends such as earnings momentum or earnings surprises, choosing instead to emphasize evaluation of the economic fundamentals of a business, focusing on a company’s long-term prospects.

The Businessperson’s Approach

  • Buy outstanding businesses in growing industries
  • Invest in companies whose business we understand
  • Focus on predictable, excess cash-flow generation
  • Do not follow the stock market herd

Our Strategy to Minimize Risk

  • Diversify over a spectrum of good businesses
  • Apply knowledge through fundamental analysis
  • Attempt to buy out-of-favor stocks or stocks trading at a price less than what we believe the business is worth

Fixed Income (bonds)

Employing a total-return approach, bond portfolios are constructed to maximize after-tax returns.

Credit Quality: We emphasize investment-grade securities. We will only buy below investment-grade bonds if we know the company or issuer and believe its ratings do not accurately represent the risk of its bonds.

Maturity/Duration: Generally, we invest in maturities of 10 years or less, and will ladder maturities.

Sectors: Within a broad universe of government, municipal and corporate debt, we seek to optimally serve each client’s tax status and investment goals.

Adding Value While Reducing Risk

  • Focus on investment-grade quality
  • Calibrate maturities
  • Evaluate sectors for optimal results
  • Operate with low fees and low transaction costs

PLEASE SEE IMPORTANT DISCLOSURE