Constancy To Purpose

David Wendell

Over a period of years, it is the growth of earnings per share and dividends which lifts the intrinsic value of common stocks and creates higher share prices. This is a fact of investment life that can easily be verified by looking at the long-term price and earnings per share trends of publicly owned stocks.

Thus, our approach is to identify and recommend the purchase of well-managed companies with superior long-range earnings prospects. Our clients continue to own them as long as we believe their managements are doing an outstanding job in their role of increasing shareholder value.

Those who own successful companies are certain to participate in their success if they hold the shares long enough for the underlying earnings and dividends to multiply significantly. In our analytical work, we focus on those companies, large and small, which we believe can achieve above-average results based on our assessment of the opportunities and risks that lie ahead.

We adhere to the principle that portfolio assets -- whether in common stocks or bonds -- should be diversified among a carefully selected and continually monitored group of high-quality issues.

Having an investment plan, and sticking to it, is essential. Investors should have a clear idea of what they would like to accomplish with their capital. We do not accept clients who wish to speculate or conduct an in-and-out trading approach.

Too many investors are forever chasing stock market rainbows in hopes of a quick profit. Others become discouraged and give up at the wrong time. But those who view themselves as part-owners of the businesses in their portfolios are best able to maintain a long-term perspective and constancy to purpose.