Private Investment Management

Investment Philosophy Statement for Capital Appreciation Portfolios

You may be able to achieve Capital Appreciation by investing primarily in common stocks of historically sound companies that have demonstrated consistent earnings growth. I recommend that investors hold these companies as long as they continue to meet ongoing operating criteria and they maintain a commitment to a long-term view of each company in relationship to long-range economic expectations.

This investment philosophy is based on the premise that the stock market allows alert investors potential opportunities to buy companies with long-term earnings potential at prices that I believe fail to reflect this potential. These opportunities usually occur when investors are concerned with near-term earnings performance of the company.

Because it is not possible to accurately predict turning points in market or economic cycles for any sustained period, this philosophy concentrates on companies whose annual earnings performance historically has been relatively unaffected by the economy. These companies generally manufacture products or offer services independent of the economy or they have been able to minimize its impact on their earnings and cash flows through diversification of products and services. Examples of such companies historically, I believe, could be found in, but are not limited to the food and drug industries.

Portfolios are developed to meet the investor’s specific risk tolerance and investment constraints while taking into consideration his or her long-range expectations. Core portfolio holdings are comprised of companies that have demonstrated and I believe will continue to demonstrate an ability to generate cash flow, earnings and dividend growth rates at better than the S&P 500. Fundamental analysis and strict financial criteria are used to select and monitor core holdings.  Turnover is usually very low for this portion of the portfolio. 

Bond issues by corporations, the U.S. Treasury, states and municipalities are used according to investor requirements to potentially improve stability and increase cash flow. When conditions warrant bonds may be used in an effort to help improve portfolio total return.

Private Investment Management Guide