Our Investment Approach

Philosophy | Process | Communication

Investment Process

Equity Management

LCM’s approach seeks to identify:

• Sectors whose revenues are growing faster than the economy
• Companies in these sectors with consistent earnings growth
• Quality stocks with:
    • Growth greater than other companies in the sector
    • Dominant industry position
    • Superior operating record
    • Reasonable prices: PEG < S&P 500 PEG

Leeb’s fundamental research process consists of 4 components:

• Business Analysis
• Determination of Growth Factors
• Company Analysis
• Management Analysis

A sell discipline is equally important as a buy discipline to successful investing. LCM exercises three different sell disciplines:

• When a stock meets our performance expectations
• When we foresee major directional changes in the economic environment such as interest rates or inflation
• When prospects for the company do not meet our expectations, even if it means taking a loss

Read more on our growth investment strategy

Income Management

Income management focuses on the preservation of capital with minimal security turnover. The income portfolio will consist primarily of common stocks, preferred stocks, limited partnerships, and bonds with an objective to minimize the following risks:

• Inflation risk which diminishes purchasing power
• Credit risk by focusing the majority of holdings in investment grade securities
• Market risk by diversifying between various income sectors such as, REITs, utilities and preferred stocks

Continue to our client counseling and communication

"The traditional allocation is among stocks, bonds, and cash. We think this is a meaningless approach and investors should think strictly in terms of growth, income, and market insurance."

• Stephen Leeb on Growth Investing

• Asset Allocation: An Unconventional View

• Upcoming appearances by Stephen Leeb

Our Investment Approach

Investment Process

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