Portfolio Construction

Our goal is to build long-term wealth for our clients in keeping with each client's specific set of objectives and constraints. We adhere to a disciplined and time-tested investment philosophy, offer attentive management of client accounts, and are mindful of capital preservation.

Eads & Heald Investment Counsel concentrates on five factors in constructing and managing each client's portfolio:
  • Client Investment Objectives
  • Growth
  • Quality
  • Valuation
  • Diversification
Each portfolio we manage is unique. Therefore, it is imperative that we understand the investment objectives of each client we serve. We will prepare a Statement of Investment Objectives for your approval that will be the basis of investment decisions made on your behalf. Our goal is to create an overall strategy for your portfolio that truly fits your needs and convert your needs into a structured investment approach.

In implementing our equity investment philosophy, we seek established companies, each with a proven track record of consistent growth in earnings. Such companies provide a powerful engine for building wealth in one's portfolio. Our strong conviction is that growth stocks are an excellent means of achieving rewarding returns for the long term investor.

Each security we utilize in a portfolio is stringently reviewed to assess the company's financial strength. We are constantly mindful of capital preservation in the quality of the companies we use as investment vehicles.

We are always mindful of valuation.  Securities placed in the portfolios we manage are the result of top-down, fundamental analysis. We begin the investment process by identifying emerging trends that will impact investments within five years. We then identify the industries that are most likely to benefit from these trends. Next, we seek to identify specific companies within these favored industries that offer the highest expected total return. Our equity valuation model considers three primary factors that make up total return:
  • Earnings growth rate
  • Dividend yield
  • PE expansion/contraction
Finally, to complete the process, we overlay a technical look at the near-term stock price momentum.

In keeping with our overriding goal of capital preservation, we steadfastly adhere to a policy of diversification within each portfolio we manage. Adequate diversification significantly reduces risk. Diversification also exposes the portfolio to many market segments, thereby enhancing the likelihood of reasonable returns under a variety of economic and market conditions.

Eads & Heald also manages balanced (stock & bond) portfolios for investors whose investment objectives point to the need for a stable, secure stream of income. 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.