We market a long-term track record in the financial markets utilizing
a contrarian philosophy combined with a well-seasoned investment program.
The foundation of our firm is knowledge, integrity and experience. Patience
and discipline are the key components of our investment programs.
Our philosophy
is contrarian by nature. We do not try to predict markets. By looking
for financially strong, undervalued securities and adding patience and
discipline, we pinpoint those stocks and bonds which suit our investment
criteria.
Capital Investment Counsel, Inc. follows a very fundamental investment
program. The following program was conceived by one of the company's founders,
E.O. Edgerton, Jr., and has survived the acid test in judging any investment
strategy; it has demonstrated consistently over time.
BARGAIN
PRICED STOCKS.
We buy stock in good quality, financially strong companies selling at
or near their historical lows. Stocks that are currently out-of-favor
can protect the downside while increasing the upside potential of the
investment.
REINVESTMENT
OF DIVIDENDS.
Consistent reinvestment of dividends to make additional purchases has
provided maximum performance for our clients, although this strategy
can be altered to meet individual needs.
TAX CONSIDERATIONS.
Generally, all taxes on market gains are paid separately by the client,
not from his portfolio. The result is unimpeded growth.
SAVINGS
AND PREMIUMS.
Flexibility is designed into the program permitting additional deposits
on either a random (savings) or systematic (premiums) basis allowing
additional growth.
MULTIPLICATION
OF STOCKS AND
DIVIDENDS. This is the most fascinating part of the program and is a result
of following the first four program steps. In cases where current
holdings have increased in value, we may select to sell the position
and multiply the proceeds into two, three of four positions at lower
prices. This practice also helps to further diversify the portfolio.
In some cases the dividend may even be increased.
PYRAMIDING
BONDS AND INTEREST.
High quality bonds may be purchased to complement our stock program.
The interest can be utilized to buy additional securities depending
upon client objectives.
By using the best research resources available, Capital Investment Counsel's
portfolio approach is best designed to preserve capital and provide above
average investment performance over the long run.
