Investment Style

Investment Philosophy 

 Our investment philosophy is to invest to achieve returns consistent with client objectives
relative to the market performance using three basic guidlines:

(1) Diversify by allocating assets across five broad asset classes: stocks, bonds real estate, commodities and cash.

(2) Buy quality, using investment grade bonds and value-oriented stocks with mid to large market capitalization.

(3) Be long-term oriented with a minimum two year commitment and a portfolio time horizon of five years or more.

Asset Allocation 

Part of your financial plan is an investor risk tolerance evaluation.  This evaluation helps determine an appropriate asset allocation between stocks, bonds and cash. Asset Allocation is not static. A Tactical component is utilized to take advantage of moving markets.

Stock Selection  

We recommend a value oriented stock selection process. Primary stock selections are based on large capitalization blue-chip stocks with above average dividend yields and growth rates. We emphasize "S&P 500" stocks. Secondary stock selections are based on extensive research outside of the S&P 500. We believe in balancing portfolios between all industry groups (a top down approach). Value stocks in current under-performing industries are specifically targeted for potential selection. We utilize mutual funds and outside money managers in areas that we do not concentrate. We constantly review these managers for performance and style shift.

Bond Selection

The strategy for building bond portfolios is largely dependent on the investors 'income desires and the tax status of the account. With tax-free bonds, income is
the primary concern. Also, the supply of tax-free (municipal)bonds is at times limited. This can restrict the potential diversification that is needed. With taxable bonds, income and preservation of capital are equallly important. With both portfolios, We attempt to ladder the bonds with yearly maturities. Ladered bonds provide nice income streams, the ability to profit from rising yields, protection from declining yields and protection from dramatic price changes.

Our bond selections are based on an analysis of each bond:

  •        Investment grade rating(Moody's and S&P)
  •        Yield to maturity
  •        Issuer recognition 
  •        Maturity and call features
  •        Price - with emphasis on discounted bonds