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DEIGHAN ASSOCIATES, INC. - REGISTERED INVESTMENT ADVISOR
455 HARLOW STREET BANGOR, MAINE 04401 - TELEPHONE 207 990 1117
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Our Investment Approach
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"We build durable portfolios designed to withstand the tests of time. We accomplish
this through thoughtful security selection, low portfolio turnover, and a disciplined
investment process."
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Jenifer L. Wilson, CFA
Vice President and Portfolio Manager
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Thoughtful Security Selection:
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Deighan Associates buys solid growth companies with strong financials. To accomplish
this successfully, we employ an equity investment style that is most closely likened
to a GARP or "growth at reasonable price" style. Our style first employs the fundamental
analysis techniques used by "value" style managers who search for relatively cheap stocks
compared to earnings and book value. At the same time, like "growth" style managers, we
seek to identify and purchase companies that are likely to grow substantially faster than
others. We don't mind paying up a bit for quality growth stocks. However, we are
selective, because over time, reasonable valuation does matter. We think it is important
to consider both growth and value when choosing long-term investments.
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Our method of selecting bonds or other fixed income securities subjects the issuers to
many of the same financial strength, growth, and value tests used in stock selection.
We generally concentrate on companies whose bonds are rated "investment grade" by
independent rating agencies, and restrict our purchases to bonds maturing in ten years
or less. Studies indicate that debt securities of intermediate-term maturities have
offered the best combination of low risk and reasonable return for the last century.
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Low Portfolio Turnover:
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"Measure twice, cut once" works as well in portfolio management as it does in fine
tailoring. Following careful security selection, we prefer to hold securities for a
long time. We hold equity securities until growth requires a trimming of the position,
or a change in fundamentals signals a re-evaluation and possible sale of the entire
position. We generally hold debt securities until maturity.
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We do not make major portfolio shifts in response to changes in the psychological,
political, or economic environments. Instead, we make changes in response to
developments affecting the fundamentals of specific industries and companies. In
light of the historically dismal record of market timers, we think it is important
to employ discipline and avoid large shifts in portfolio asset allocation.
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