- A long-term investment strategy, when applied to companies with attractive risk/return characteristics, is more successful than attempting to "time the market".
- Select growth stocks possessing notable distinctive competence features that will provide superior returns in long-term investment portfolios.
- Engage in rigorous primary research into company characteristics (company fundamentals and financials, industry attractiveness, ability and depth of management, strength of board of directors, etc.) as an effective way to identify companies with distinctive competencies in serving their markets.
- Capitalize on this historical relationship by choosing growth companies with better risk/return characteristics than those of the market as a whole, paying strict attention to price and valuation at time of purchase.
- Measure stock progress by enhancement of company fundamentals, not short term price fluctuations. Let winners compound to the benefit of the portfolio; deal with laggards promptly based on strict sell discipline.
- Invest across the market capital spectrum noting that, historically, small capitalization stocks are more volatile than large capitalization stocks.
Disclaimer