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Our Investment Process
We manage our portfolios around a model which usually contains 20-25 mid and large cap cyclical stocks. When we buy or sell for the model, we make the same changes in our client portfolios. Due to timing and cash balances, few of our client portfolios own every stock in the model. However, performances of the model stocks are closely replicated in our portfolios.
Stock Selection
A universe of dividend paying stocks is screened for several basic criteria. The stocks that meet our basic screens are then analyzed for negative characteristics that will eliminate them from further consideration. Finally, we set target purchase prices for the stocks we would like to own. If they reach our target prices and we have space in our portfolios we buy them.
Stock Sales
We set buy and sell target prices for each stock at the time we buy it. If we don’t reach our target price on the upside after owning a stock for a reasonable period of time, we sell it and reinvest the proceeds. On the downside, a 20% loss is the limit.
Securities in the portfolios are constantly reviewed for changes in their fundamentals that would cause them to no longer meet our investment criteria. A stock that no longer meets our basic criteria is sold.
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Investment Managers and Advisors |
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Top 5 Holdings as of 1/31/08 |
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Stock Holdings |
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Industry |
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AT & T |
3.9% |
Telecom. |
6.78% |
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Kinder Morgan Energy |
3.8 |
Banks |
6.00 |
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C.R. Bard |
3.7 |
Natl. Gas |
3.79 |
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Coca Cola |
3.6 |
Medical Supplies |
3.71 |
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Illinois Tool Works |
3.6 |
Beverage |
3.64 |
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Stock |
79.00% |
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Fixed Income |
13.27 |
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Cash |
7.73 |
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