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Investment Management Services Investment
Philosophy We believe that no one should take
any more stock-market risk than they need to in order to reach their
investment goals. We employ asset allocation to diversify
portfolios and position them appropriately. We also believe that clients should
have their own investment philosophy and it should include: RISK
- Clients need to realize that risk translates to variability
of returns. The greater the potential returns, the greater the
possible change in value of the portfolio. COMMITMENT
- Clients that experience investment success understand the
above potential rewards are counterbalanced by potential risks.
Clients who can't accept the possibility that their account value
could drop by 25% while invested in the stock market should either
limit their stock market involvement, or avoid the stock market
entirely. Finally, because investment styles go in and out of
favor, clients should give their investment manager three to five
years to perform for them. Equity
Selection Process We monitor a universe of hundreds of
stocks for potential inclusion in clients' portfolios. The
selection process involves many variables, chief among them are: Fundamental
Research This is company information that is
gathered from numerous sources. These include public company
documents and disclosures as well as research provided by analysts.
This information provides a look at how the company is managed, how
it's doing, who are the competitors, and what are the prospects for
the future. Technical
Research Enron and Worldcom have shown us that
fundamental research has flaws. Companies can understate the
truth and analysts can be fooled just like anyone else.
Therefore, we utilize technical research as a valuable tool to
discover whether money is coming in or going out of a stock. Once our fundamental research has
identified a strong "buy" candidate, we use technical
research in the form of "point and figure" charts to show
us good entry points. We also use these charts in formulating
our sell discipline. Equity
Portfolio Protective Measures We are all familiar with the concept
of, and need for, insurance. We all have automobile insurance,
healthcare coverage and home insurance. We have a long history
of insuring those things of great value to us. Why don't we insure our investment
portfolio against loss? At J.W. Thompson Investments, we
believe there are times when it is prudent to use portfolio
protective measures. Equity Sell
Discipline The success of the "buy and
hold" approach to stock investing is legendary. And for
good reason - it works. Yet, true investing success means not
"marrying" a stock. Though we would prefer to buy a stock
and hold it indefinitely as it grows over the years, we establish
sell points for a stock when it is first purchased and as it goes up
in price. Our sell points preclude any
emotional attachment to a stock. Usually when these sell
points are hit it indicates that something is brewing below the
surface that can spell trouble. At the very least, our sell points
and sell discipline attempt to hold portfolio losses to reasonable
levels. Fixed
Income Investment Philosophy Owning debt securities can be an
integral part of many clients' investment strategies. We seek those fixed income securities
that provide the best net income for our clients based on their
individual circumstances and the over-all interest rate environment. Why is J. W. Thompson Investments your Best Choice? Complete spectrum of investments for individuals, organizations, and companies. Communication to keep you informed and aware of your progress. Dedication to helping you reach your financial goals.
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