In selecting stocks for our portfolios, we focus on two critical elements: the health of the company and the valuation of its stock.  We look for high-quality companies with proven businesses models, sound balance sheets, dominance in their markets, and liquidity.  We apply a variety of valuation techniques, including relative price/earnings ratios and asset value analysis, to determine whether a stock is attractive at its current price.  Our proprietary valuation system integrates fundamental and quantitative measures to guide our decisions.  We use those same valuation disciplines to decide whether and when to sell stocks.


We consider the following factors to manage equity portfolios:

  • diversification among sectors, market capitalization, and price/earnings ratios

  • subtle cultural changes, which provide some of our best ideas

  • demographic and economic trends we expect investors to favor

  • sectors or types of stocks where the market’s perception is likely to change