INVESTMENT STRATEGY

Our investment strategy begins by methodically screening about 6000 public companies.  We seek to identify companies with market capitalization greater than $1 billion and a history of consistent earnings per share growth.  Usually, a list of 600 companies remain.

Next, the companies are scrutinized by examining them three different ways: First, we analyze them fundamentally as a business. How do they make their money and can they continue that record into the future? Second, we focus on the technical characteristics of the security itself. For instance, are the insiders buying or selling? Is the stock and its industry gaining relative strength? Lastly, what are investors paying for the company's growth relative to history and how does that compare with their estimated growth in the future? Are all of the positive factors already fully reflected in the price of the stock? Finally, we set appropriate buy and sell target prices for the 40 to 60 best candidates.

Our sell discipline is the buy strategy in reverse. Deterioration in the above factors is grounds for reducing or eliminating a stock. We also eliminate stocks when more attractive candidates become available.