Buy Discipline

We assess the near-term appreciation potential, intermediate and long-term outlook and overall quality of a stock according to three sets of criteria. The securities that meet all three criteria are the most attractive investment opportunities.

The Buy Criteria

Objective Fundamental

• Positive Earnings Surprises

• Accelerating Sales and Earnings Growth

• Desirable Supporting Fundamentals

• Upward Estimate Revisions

Security Timeliness

• Supportive Price and Volume Trends

• Positive Relative Strength

• Increasing Institutional Interest

Subjective Fundamental

• Validated business model

• Attractive industry and/or corporate developments

• Visible and sustainable organic growth

• High earnings quality

Among the company-specific factors we look for are increasing order backlogs, increasing same store sales, new product introductions, and benefits from capacity additions. We also assess factors such as the level of competition within an industry, the outlook for demand and pricing, and relevant industry changes and legislative and economic developments.