Reasons for our success
- WE ARE TOTALLY FOCUSED on a well-defined stock universe and we know these stocks better than any other investment management firm.
- WE CAN MOVE QUICKLY TO EXPLOIT TEMPORARY MARKET MIS-VALUATIONS, since we have already done the detailed fundamental valuations of many of these stocks. For example, the market often initially overreacts to surprising good or bad news about a company.
- OUR PORTFOLIO MANAGER first began analyzing Texas stocks in 1976. He has worked for many years with the same universe of stocks.
- OVER MANY YEARS, we have revised and fine-tuned our proprietary computer investment database and stock selection criteria.
Limiting Risk
- We use time-tested CONSERVATIVE VALUATION MEASURES such as low price-to earnings (PE), low price-to-book value, stocks selling at the lower end of their one, three, five-year price ranges
- Quantitative measures are just the beginning of our analysis. Stock selection is based on IN-DEPTH FUNDAMENTAL RESEARCH, often done over several months.
- We AVOID HIGH-PRICED, “high growth” companies in which investors are betting on long-term high growth.
- WE DO NOT USE stock price “MOMENTUM INVESTING” OR STOCK-PATTERN CHARTING, known as “technical analysis”.
- WE DO NOT TRADE IN AND OUT OF STOCKS ON A FREQUENT BASIS. Our average holding period for a stock is about two years.
