September 9, 2015

Core Equity

BALANCED ACCOUNTS    CORE FIXED INCOME

Our equity approach can be considered “Core Equity”, meaning our investments are not concentrated in just a few market sectors, a few industries, or a few company-size ranges.  In other words, it’s not highly concentrated in one specific area.  This gives us wide latitude to try to find value across most of the equity space.

HERE’S A BRIEF LOOK

“All Cap Equity” Approach

Cross section of large-to-small capitalization companies

—Proper industry & sector diversification

—Balanced mix of growth & value stocks

—Focused on rigorous independent fundamental research

      Attractive industry dynamics

      Efficient operations that generate attractive returns on investment

—Strong management focused on building shareholder value over the long-term

—Long-Term Approach

—Focused on buying durable businesses that create shareholder value over the long-term

Valuation

Focus on both absolute and relative valuation

PE, PEG, price/cash flow, dividend yield, EV/sales, EV/EBITDA

Buy Discipline

We consider buying a position when we believe the shares exhibit a compelling value for the expected level of risk

—Sell Discipline

We consider selling a position when we believe the shares are trading at an excessive valuation, a negative change in industry or company fundamentals has occurred, or an alternative investment exhibits a better value

—Diversification

—5% In A Security, 25% In An Industry, Daily Monitoring Of Positions

—Traditional Financial Statement Analysis

—Ratio analysis, earnings estimates, cash flow estimates, growth potential, strong balance sheets

—Qualitative assessment of company management


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