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GROWTH STRATEGY

Smiling Business Pople shaking hands

Our approach toward growth investing is to select the stocks of companies which we believe have above-average earnings growth prospects. We purchase the stocks of companies whose future earnings growth is estimated to be at least 10% annually. Companies selected must meet our standards for financial strength, profitability and sustainability of future growth. We pay particular attention to revenue growth, because we believe the only sustainable growth comes from increased revenues, rather than simply through profit margin improvement. As part of the valuation process, stock purchases are made at price/earnings ratios that bear a reasonable relationship to the anticipated future rate of earnings growth. The ratio of stock price to trailing twelve month revenues per share is also part of our analysis.

Once a growth portfolio is constructed, we continuously monitor the earnings progress of each company in the portfolio. Companies that fail to meet our earnings growth expectations will normally be sold and replaced with stocks that meet our investment criteria. We believe that successful growth investing requires a portfolio earnings stream that is growing at above-market rates. By constantly pruning those issues that fail to meet our expectations, the portfolio will remain vibrant and should experience satisfactory earnings growth over the long term.

At Groesbeck, you will find us to be client friendly, flexible and devoted to our investment discipline. We work closely with our clients, understand their investment objectives, and strive to produce results which exceed their expectations.