INDIVIDUALIZED INVESTMENT APPROACH

We believe that successful investment strategies must reflect individual preferences and circumstances. Because of this belief, we tailor an investment program and a specific portfolio to achieve each client’s objectives. And we are fee based, not activity based, so we grow only when your investments grow. A proven method for reaching a client’s specific investment goals In practice, this client-focused investing requires a three-step approach:    We start by reviewing an investor’s current financial status, short- and long-range goals, and tolerance for risk. That results in an overall investment profile. Naturally, these profiles differ, not only between individuals and organizations, but also among individuals of different ages and circumstances.    Next we develop an appropriate investment strategy. To do this, we typically allocate funds to different classes of assets, creating a portfolio that provides diversification and balance, with an emphasis on total return. In making these allocations, we employ safeguards to aid in the preservation of capital. Once we establish a basic strategy, we select specific investment vehicles expected to do well in forecasted economic, financial and market environments.    We repeat the review process regularly, assuring that our investment strategy is always in line with a client’s goals.    The result is a comprehensive, long-range investment program focused on client-determined objectives. A flexible, prudent approach for choosing investments Our method for selecting specific investment vehicles is built on four basic principles:    Focus on quality  In selecting equities, we use a “bottom up,” fundamental investment approach, looking for companies with high levels of profitability and financial strength across broadly diversified sectors. We blend investment styles: growth stock investing – identifying securities with above average potential for earnings growth; and value investing – identifying securities considered undervalued. In all cases, we use prudent evaluation criteria to screen possible candidates.    In selecting fixed income investments, we identify vehicles that offer maximum current yields with the assurance of the highest credit ratings. To minimize interest rate and inflation risks, we usually buy short- to intermediate-duration debt instruments issued by highly rated corporations and municipalities, the U.S. Government and its agencies, and money market funds.    Avoid market timing  Invest for the long term. We seldom engage in short-term trading, trying to reap small profits by guessing turning points for specific markets or equities. We believe such speculation is unnecessary in attaining long-term investment goals and instead, we focus on long-term investing, looking for securities and debt issues our clients can hold for several years.    Know when it’s time to sell  While we sometimes have to react quickly to specific market or client developments, we usually follow clearly defined, well-established rules for selling an equity or debt issue. Those rules allow us to protect both market gains and accumulated investment capital.    Minimize volatility  We believe our clients are generally risk averse; therefore, we avoid using highly volatile financial instruments such as derivatives, futures contracts, options, commodities or limited partnerships.