Investment Philosophy

We invest in stocks of companies that have a compelling strategy for growth, have differentiated products or services that are dominant in their industry, and have a

strong balance sheet.

We invest in bonds that have high relative yields and low relative risk.

Portfolios are diversified:

• between stocks across economic sectors
• between asset types: domestic stocks, international stocks, bonds, and cash

Companies are rigorously researched and must show:

• a proven record for revenue, earnings and cash flow
• excellent core competencies and dominant in their industries
• a strong and stable management team
• a clear and strategic direction for long term growth

Valuation

We purchase companies that are undervalued based on:

• financial ratios such as PE, PEGY, P/S, ROI, ROE
• price multiples and profit margins compared to peer companies
• qualitative assessment of core competencies and management performance
• proprietary valuation models