Creating a customized portfolio is a three step process...utilizing approved equities from our closely monitored list of “best companies.”

Everything purchased in client portfolios is the result of our independent research and will always be transparent, liquid, and straightforward.

  • Investment Policy Statement

    After meeting with you to understand your financial situation, we create an Investment Policy Statement that summarizes your specific needs, investment goals, and expectations. The Investment Policy Statement serves as a guideline for designing your portfolio and monitoring your investment success on an ongoing basis.

  • Ideal Asset Allocation

    We then determine your ideal asset allocation, taking into account not only your risk tolerance, return goals, and cash flow needs but also the current macroeconomic environment. We consider your long-term asset allocation in the context of current economic conditions to arrive at a proposed weighting between asset classes.

  • Utilize Approved Equities

    Finally we select the specific investments for your portfolio by utilizing approved equities from our closely monitored list of “best companies.” When it is appropriate to utilize fixed income debt instruments, they are carefully selected and researched so as to provide not only a degree of assurance as to safety, but also to meet your asset allocation needs and to provide the appropriate cash flow.

Key Factors In a Client Portfolio:

  • Portfolio Reward/Risk ratio of at least 2:1
  • Intrinsic value at least 30% over market price
  • (Upside potential two times greater than downside potential)
  • Reward/Risk = (Portfolio Return)/(Standard Deviation), also known as the Sharpe Ratio, within predetermined limits
  • Initial individual stock weightings of 5.0%
  • Trim positions over 10%
  • Diversify among sectors and industries
  • Minimize systematic risk (overall market risk) and factor risk (interest rates, inflation, currency, among others)