The Griffin Asset Management Sustainable Growth Strategy invests in large, mid and small capitalization stocks of high quality companies that are trading at a reasonable price relative to their growth prospects. The strategy focuses on identifying companies with above-average earnings growth expectations over the intermediate to long term.
Two things our Sustainable Growth Strategy team considers when researching investments are identifying companies with above-average growth potential and then determining a reasonable price to pay for the growth. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” (Warren Buffet) Focusing on growth, while being mindful of price, enables Griffin’s investment team to invest in high quality companies and hold them for many years.
Investment Strategy Advantages
It is a known fact that owning high quality companies for the long term produces superior returns in comparison to other investment strategies. Our Growth Strategy has an average holding period of 3 years which limits capital gains taxes and helps maximize after-tax returns. High quality companies tend to have stable business models which perform well in both good and bad economic times. Our Growth Strategy managers invest in tomorrow’s leaders by focusing on innovators of new products, companies with increasing market-share and top management.
- High Earnings Growth
- High Revenue Growth
- High Return on Equity
- Earnings Momentum
- Low P/E to Growth Ratio
Investment Strategy Risks
Market – Risk associated with an overall decline of the stock market.
Style – Risk associated with an investment style temporarily going out of favor.
Concentration – Risk associated with holding a concentrated list of stocks, typically 25-30, versus an index which may hold hundreds.