Criteria For Equity Selections
There are periods when certain types of businesses are highly popular and other times when they are thoroughly avoided. GrowthQuest's approach is to buy them in the latter times and sell them in the former. Such an approach may take some time to bear fruit. Indeed, one of the only constants in the market is that investor sentiments change. When they do, we are confident they will bring with them the increased value that will reward our patience. GrowthQuest takes into consideration the following criteria when selecting our investments:
- A long established business track record.
- An operating history through both good and difficult economic environments.
- A ten year trading history as a public corporation.
- A low or manageable debt load and a proven ability to meet debt obligations under difficult business conditions.
- Dividend payments and a solid dividend payment record.
- An unpopular and/or misunderstood company, preferably, in an industry that is also out-of-favor.
- Trading history at price levels at least double the current price so it will not have to set a price record to double in value.
- Senior management with a large stake in the company and/or a family or related shareholder group that has a controlling interest, if not outright control.
- Management and/or controlling shareholders we find admirable.
- A business or product that is understandable or familiar to us.
Fixed Income Security Selection
When buying fixed income securities, we primarily focus on top quality credits. The maturity dates generally do not exceed 10-12 years and can be staggered to help meet clients' varied liquidity needs. Our primary objective in managing fixed income instruments is to provide regular or periodic income, to diversify portfolios and to provide liquidity.