Philosophy - Process

We believe that we best serve our clients’ interests by adhering to a well-disciplined, long-term investment program that focuses on after tax returns and steady capital growth.  Such a program, by definition, does not attempt to maximize short-term performance, which would entail much greater risk, but rather attempts to optimize long-term performance.

Investment Philosophy


Value investing is a philosophy of buying securities priced less than their intrinsic value.  Intrinsic value is determined by the discounting of all expected cash flows at a rate commensurate with the risk of the investment, and it is an estimate of the price an investor would be willing to pay for the business in a private, "arms length" transaction.

Our philosophy is based on the following premises:  

  • Stock prices fluctuate more than the underlying “intrinsic” company value,
  • Stocks selling for less than their underlying value will eventually adjust to correct this divergence,
  • Identifying and purchasing the stock of companies selling for less than their underlying value will result in superior returns with less risk, and
  • Stock investments should only be made from the perspective of a long-term owner of the underlying business.

If we wouldn’t want to own the business, we don’t invest in the stock.


To out-perform a benchmark index, such as the S&P 500, the portfolio holdings must have some combination of superior attributes. In the simplest form, these portfolio attributes are as follows:

A)  Higher Growth – must grow faster than the index

B)  Lower Value – must be purchased cheaper than the index

C)  Higher Yield – must yield more than the index

Empirical evidence has shown that value investing outperforms competing strategies over a full market cycle.  

Investment and Risk Management Process

We have a proven process focused on advancing your objectives.  You know what your financial goals are, and our disciplined approach can help you get there.


  • Evaluate Trends and Forecasts – based on independent, proprietary and third-party research
  • Identify Risks to Outlook – particularly those that effect long-term, fundamental expectations
  • Estimate Market Indicators – such as GDP and S&P multiples, among others


  • Screen Universe to Identify Candidates – based on growth, value and yield
  • Compare Holdings to our "Best of Breed" – those companies that are industry stand-outs
  • Identify Market Anomalies or Mispricing – to capitalize on outliers

PORTFOLIO DESIGN: Relative Value Asset Allocation (ReVAA)

  • Develop "Asset Class Target Weightings" – based on historic metrics and our opinion of the economic environment
  • Assign weightings relative to benchmark
  • Monitor and review

Click on the icon below to Contact Us to see how we can help you Invest Smarter


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