Using a consistent and disciplined approach, we identify stocks which are selling below their long-term intrinsic value. We look to invest in companies that have strong finances and competent management in attractive, understandable businesses. We attempt to purchase securities for significantly less than what a knowledgeable buyer would pay for control of the ongoing business. This leads us often times to overlook temporary negative factors that will depress a company’s stock price, but does not impair ongoing business value. We invest in companies that we believe have the potential to create long term value for shareholders.

The most attractively priced issues are purchased for portfolios in a manner which maintains appropriate industry diversification. Every security for purchase is reviewed with particular attention given to factors which impact a company's income, and balance sheet, its growth potential and its ability to generate cash flow to service and repay debt. Positions are usually held for at least 2 to 3 years and are sold when the price exceeds our estimate of long term intrinsic value or there is significant deterioration in financial strength. We will also consider selling companies whose prospects are less attractive than other identified opportunities.

Over the long term, common stocks have provided a superior rate of return versus bonds therefore we believe common stocks should form the core of all portfolios. This core is designed to allow the total portfolio to grow, thereby offsetting the effects of inflation. Moreover, we believe that common stocks that have achieved consistent dividend growth are a better vehicle to meet income requirements over the long term than fixed income securities. In specific cases, fixed income securities are purchased to provide for current income needs as well as to stabilize the overall volatility of the portfolio.