We use publicly available data, stock screeners, and proprietary research to identify a group of about 25 public companies that meet our criteria. From this group we select a small basket of companies, typically maintaining positions in 6 to 12 of these companies. We actively manage this portfolio by employing a proprietary form of relative analysis, trading primarily with the goal of owning more shares of these good companies.
In determining our estimate of the "intrinsic value" of a company, we adhere to the teachings of Benjamin Graham, best known as Warren Buffett's college instructor, mentor, business partner and friend. Graham, and his business partner David Dodd, authored two master works, "Security Analysis" published in 1937 and "The Intelligent Investor" published in 1949. These widely accepted and authoritative writings are the bedrock upon which our investment strategy is built.
"The determining trait of the enterprising (or active, or aggressive) investor is his willingness to devote time and care to the selection of securities that are both sound and more attractive than the average."
Benjamin Graham, The Intelligent Investor
Chief Portfolio Manager - Daniel Dower
Associate Portfolio Manager - Vern Bell
Associate Portfolio Manager - Samuel Zavaletta
Investment Policy Statement
We are first and foremost value investors. We seek to take advantage of the irrationality of the stock market by purchasing stocks when their prices are below their intrinsic value and conversely selling stocks when their prices are above their intrinsic value.
The ERVS shall invest in large-cap, dividend-paying stocks. Although the strategy is primarily focused on domestic companies, the ERVS may from time to time invest in the stocks of foreign companies.
Investments involve risk, including the possible loss of principal.