Intelligent investing in the securities markets is a business. Like any other business, it is both a science and an art. Sound investing must rely on a basic understanding of the sciences of economics, finance, and accounting. It also requires an artful understanding of people, ideas and concepts, and of their potential for fulfillment.
The business of investing has always been and will continue to be complex. Utilizing a qualified investment professional is as important as obtaining the services of highly trained professionals in other areas. Investment management requires full-time attention.
We believe continuous portfolio supervision, based on a thorough knowledge of investment fundamentals, economic value and a sense of timing, is the key to successful investing.
Investments are made principally in securities listed on the major security exchanges. We may also purchase securities of selected companies traded in the over-the-counter markets. We do not participate in private placements. We do not manage commodities, collectibles, or real estate.
We will not buy securities on margin, sell short, or use options unless we have consulted with the client to discuss the risks involved and obtained approval. We do not subscribe to the philosophy that securities can be acquired and held forever. We believe that the securities markets, as well as industries and companies, can be cyclical in nature. These cycles may be inherent in the industry or the company itself, may be national –or even international — in scope. Technological, economic, monetary, social or political forces, alone or in combination with one another, determine cycles. The life span of these cycles will vary, and may be long or short.
For these reasons, we place our emphasis on a business-like evaluation of current conditions. We study market history to get a better understanding of security values under different conditions, but do not try to apply historical evaluation methods directly to today’s markets.
We believe in diversification and recognize that the proportion of classes of securities to be held at any given time may vary, depending upon economic and market conditions. The relationship of money instruments, bonds, and stocks in portfolios will change as we perceive these conditions.