Direct Investing

Select Stocks

To become a part of one or more of our managed portfolios, stocks must pass through our rigorous selection system.


We pre-screen over 1000 stocks and rank over 500 that pass through our filter to come up with a buy list of about 50 names. In addition to financial figures and operational considerations, industry is given weight both for diversification purposes as well as our emphasis on sector leadership.

Earnings Stream Payback

Since the purchase of a stock is really an interest in a stream of future earnings, we project earnings out over a normal corporate finance time horizon rather than just a year or two. We then relate that projected earnings stream to the current price of the stock, calculating a “payback period”.

Historical Support

We maintain a historical database and use advanced statistical methods to constantly improve the screening model. On average, stocks ranked in the top quartile of our system outperform those ranked in the bottom quartile, as well as the S&P 500, by a substantial margin.


Though disciplined in approach, we are not restricted to making any decision based solely on our methodology. Having invested through hyperinflation, three recessions, wars, and a variety of booms and busts, we are nimble as well as thoughtful. This kind of support and experience cannot be written into a prospectus or program, but it can work for you.