The goal of our managed investment program is to achieve growth or income through a portfolio of selected stocks. For the selection process, both fundamental, as well as technical considerations relating to the companies are carefully evaluated. We use a checklist of criteria which may include, but are not restricted to the following: percentage holdings by management, long-term debt, current ratios, five year earnings growth rate, return on equity, capitalization, relative strength, average daily volume, cash flow, and other factors.

Search for the golden nugget – It is our belief that within all market climates there are individual companies which represent unusual value. It is our job to attempt to ferret out these golden nuggets and select them for the portfolio. If successful in finding only one or two dynamic stocks out of every of six we select, we believe the value of a portfolio will produce returns well above average.

Control of losses is paramount – Selling a losing position is one of the most difficult decisions investors face, and many are simply unable to make it. While it is never easy to take a loss, there are times it simply must be done. We are convinced that controlling losses is one of the most important factors in successful investing.

Excessive diversification is not productive – Our portfolios typically consist of between sixteen and twenty companies. We believe investment portfolios comprised of numerous companies, sometimes as many as several hundred when mutual funds are used, is counterproductive, and will almost always result in mediocre to poor performance. No one can effectively monitor or manage an excessive number of stocks.

Stay with the winning positions – While occasional short-term opportunities may arise, we believe that the greatest enhancement to the portfolio will be derived from the “core” longer term holdings – stocks held one to five years.