Investment Philosophy

Overview


Successful investing requires patience, consistency, and a thorough understanding of stock market driversRegardless of portfolio size or economic conditions, the time-tested financial relationships that drive the stock market over long periods of time remain the same.  Thus, there is no need to over-complicate your investment strategy in most situations. 

Successful investing also requires a response to long-term structural changes taking place in society and impacting industry and company fortunes.  As potential risks and rewards from each investment sector continually evolve, we remain alert to these changes and shift assets, as appropriate, from one investment sector to another.  We do not believe that we can predict short-term swings or identify precise turning points in the securities markets.  Instead, we monitor long-term, secular changes and make small adjustments accordingly along the way.

Eads & Heald Investment Counsel seeks to blend realistic investment expectations with the client's objectives with respect to absolute and relative rates of return, risk levels and time frames.

Equity Philosophy


Eads & Heald Investment Counsel believes that over an extended period of time, equity (stock) investments in successful companies provide an attractive opportunity to increase capital and income while fighting inflation with the least risk of long-term loss.

Our equity philosophy begins with being long-term investors in high quality stocks within a very well-diversified portfolio. We do not purchase stocks with the intention of short-term trading. Our turnover of stock holdings is low.  We invest in successful companies and hold them as long as our perception of their future progress remains favorable and the valuation realistic.  We may also trim stocks if the position size has grown too large relative to the rest of the portfolio. We tend to approximately equal-weight all stocks in your portfolio.

Fixed Income Philosophy

Our fixed income philosophy involves using high quality fixed income securities.  We purchase bonds to hold to maturity unless there are good reasons to sell sooner.  Bonds can be corporate, government, federal agency and municipals.  We will diversify the issuers so as to provide an extra degree of safety.

Fixed income investments will focus on quality level, maturity date, coupon, current yield, yield-to-maturity, call provisions and long-term interest rate trend expectations in the overall economy.