We define investing as the prudent utilization of one’s assets in a manner that should improve the standard of living afforded by those assets over a sustained period of time.

Individual client objectives will always dictate the asset mix of each portfolio. Reviewing these objectives with our clients will result in an appropriate balance among cash equivalents, bonds and equities.

We are long-term investors, not market timers, who utilize fundamental analysis to select common stocks for our clients. The precise manner in which a portfolio of marketable securities is constructed will vary from client to client. However, it is our conviction, well proven historically, that the surest way to maintain and enhance one’s standard of living is through investing to the maximum extent possible in reasonably priced, high-quality common stocks. We look to invest in seasoned, undamentally sound companies which have demonstrated an ability to consistently increase earnings and consequently provide the potential for common stock appreciation. Dividend income is also a consideration when selecting common stocks, though equity investments should be primarily viewed as an appreciation vehicle.

Some clients may choose to use a portion of their capital gains to augment dividends in order to enhance their cash flow. This is referred to as a “total return” approach and, if utilized properly, should not meaningfully deplete the purchasing power of a common stock portfolio.

Frequently there are situations in which fixed-income investments are appropriate investment vehicles for a client. Bonds may be owned to provide balance in a portfolio and to provide higher levels of income than can be achieved from common stocks. Depending upon the type of portfolio, the bonds we purchase may be tax-free municipals or taxable bonds, which will either be obligations of the U.S. Government or corporations.

In order for us to recommend or purchase a bond, it must be rated as investment grade. We tend to avoid the volatility generally associated with very long maturities and look for bonds that will provide a portfolio with a weighted av erage life of less than ten years.

Whenever constructing a portfolio, we adhere to a policy of prudent diversification. Historically, this discipline has helped to reduce a portfolio’s volatility without significantly affecting its investment return. High quality and marketability are mandatory components for securities in all segments of a portfolio.