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.
INVESTMENT PHILOSOPHY
| 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. |
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| 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. |
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| 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. | |