Equity Portfolios

In equity investing, better than average company earnings and dividend growth over the long term generally produce the best returns. Hence, we dedicate much of our work to identifying factors likely to cause such growth over the long term both for individual companies and for sectors of the economy.

However, we recognize earnings and dividend prospects cannot be considered in a vacuum. They must be related to the price of a security, to similar investments and to alternative investments, including risk-free bonds. Accordingly, we quantify the prospective performance of various classes of assets at any given time, then use these anticipated returns as a frame of reference for constructing our portfolio.

We rely heavily on a research-intensive, tire-kicking, company-by-company approach to ascertain the key underpinnings driving long-term growth. As we own stocks for at least three to five years on average, a close understanding of what makes a company tick is particularly important to us.

No magic formula exists for investment success. Indeed, past successes often seem to sow seeds of their own destruction. We distrust dogma and try to remain flexible. In addition, we maintain portfolio diversity to dampen volatility. Our long-term goal is to provide clients with a growing stream of income while, at a minimum, maintaining the purchasing power of their capital.

Balanced and Bond Portfolios

Equity Accounts