Equity Selection

Investment Philosophy

Asset Allocation
Equity Selection
Risk Profile Matrix

Objective: To have a diversified portfolio of companies whose prospects for price appreciation look attractive over the next 12—24 months. Also, to set target prices where we will take partial/entire position gains – while being attentive to both a fundamental or technical breakdown in the stock.

Macro Economy Overall Economy
Attractive Industry Groups Over next 12-24 months
Micro Economy Specific Companies
Fundamental Analysis Balance Sheet
Cash Flow
EPS
R&D
Etc.
Technical Analysis Relative Strength vs. Industry Group
Relative Strength vs. S & P 500
Money Flow
Above 200 & 50 day moving average
Point and figure analysis
Etc.
Additional Research Coverage Standard & Poors
Morgan Stanley
Goldman Sachs
Merrill Lynch
CIBC Oppenheimer
Several Regional Firms
Special attention to specific analyst.
 # of years experience
 All – American status
 etc.
Equity Selection Once these as well as other factors that principals/portfolio managers have been considered, the security is purchased.
Realized Gain & Losses/Tax Consideration  
Non-taxable/Pensions, P/S Plans, Rollover IRA’s, etc. No tax consideration. Primary consideration is postion size relative to total portfolio. Also, meeting price targets or change of opinion in the technical or fundamental position of the company.
Taxable Accounts Partial/Total sales based on meeting price targets or change of opinion in the technical or fundamental position of company. Year-to date realized gains & losses. Keep positions from becoming to large relative to the overall portfolio. Long-term gains are a more important consideration for wealth accumulation.