Our views on equity investing
  • Over time, companies that tend to be good investments generally have similar characteristics: growing cash flow, increasing sales and assets, strong balance sheets, products and business lines that have competitive advantages, rising dividends, and a low ratio of market price to sales.

  • The universe of mid-cap companies – those generally with a market valuation between $2 billion and $15 billion – provides an attractive market entry point, often with a better risk-reward profile than smaller companies – which tend to be more volatile – and larger companies – which often have growth challenges.

  • A portfolio of 35 to 50 equity holdings, diversified across economic sectors and designed to address global economic trends, can provide very satisfactory returns over time.

  • High equity turn-over is counterproductive. Our goal is to own a stock at least through a market, product, or management cycle – perhaps three or four years – and often much longer.