Stock Selection

Our fundamental analysis of potential common stock opportunities starts at the industry or company level. We look for value in common stocks. Value may be variously described. We see it in companies with consistently rising earnings or where a new product is leading to vigorous earnings growth. A fundamental change in a company's operating environment or within an industry can create or restore value. Unrecognized assets or exciting management changes may identify value investments. The common thread is a market price consistent with the company's prospects and the level of values in the general market. Our job is to be aware of pivotal change within society and the economy and to seize opportunity on behalf of our clients.

Appropriate diversification among economic sectors and industries, and attention to such qualitative factors as balance sheets are, in our judgment, the sensible way to limit risk in a portfolio.