We unabashedly and without shame worship those time-tested standards of quality . Investing for the long term in companies that have achieved these standards has consistently produced returns well above the average over the past half-century, through both up and down markets. We think that those that run to them while they are still languishing will be rewarded handsomely.
Revenue growth is where it all begins.
The emergence of a company's earnings strength is the direct result of consistent revenue growth, coupled with management's ability to contain costs and provide prudent debt management. We have chosen these criteria because they succinctly characterize a company's performance, and have historically proven to be reasonably reliable predictors of future performance. The companies selected have demonstrated such qualities to a commendable degree, based on growth and stability, and are companies culled from a database of over 9,000, with data provided by Market Guide. Companies accumulate points based upon these criteria with special emphasis on both growth and stability. Because risk generally varies inversely with company size and maturity, acceptable revenue growth in larger companies is lower than in companies that are smaller or newer.