Philosophy

Equity Investment

"Successful investment results are derived from the growth of the corporations whose common stocks are owned, and not from attempts on our part to manipulate capital in the stock market."
—Doug Lane

We are guided by fundamental analysis of companies and the study of industries and economic trends.  We are not traders or market timers.  Typical portfolios are diversified across industries and hold both “growth” and “value” stocks.  Our average equity turnover rate of 10%-15% is significantly lower than that of portfolios managed by many investment advisors and mutual funds.  Low turnover can build large, unrealized capital gains, which in taxable accounts can provide a base for even further capital appreciation and income.

Fixed Income Investment

With respect to bonds, as a general rule we prefer to avoid fixed-income securities with maturities greater than six years.  Given our philosophy toward fixed-income investments, we recommend investing the funds targeted for bonds with the goal of building a bell-shaped “ladder” of maturities from one to six years.  Since it is difficult to predict the long-term direction of interest rates, we are reluctant to have our clients “gamble” on interest rates and own bonds with longer maturities.  Over time, we use this strategy to purchase corporate bonds that provide attractive rates over the yield of the equivalent Treasury note and, where appropriate, high quality tax-exempt obligations.