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
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Positive Earnings Surprises
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Accelerating Sales and Earnings Growth
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Desirable Supporting Fundamentals
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Upward Estimate Revisions
Security Timeliness
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Supportive Price and Volume Trends
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Positive Relative Strength
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Increasing Institutional Interest
Subjective Fundamental
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.
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