Buy Discipline

"Identifying stocks with the potential for superior performance requires constant attention."

-Richard H. Driehaus

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

• Identify companies displaying significant earnings and revenue growth

Security Timeliness

• Identify stocks with attractive price and volume characteristics

Subjective Fundamental

• Confirm sustainability of growth catalysts and 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.