Sometimes investment professionals offer this rather generic description of how they work: “we’re not market timers.” The kernel of truth is that it is very hard to make two good decisions regarding first, when to get out of the market and then second, when to get back in. Some stocks in the growth category are secular growth stocks, where “innovation can carry companies to growth almost independently of the economic or business cycle.” On the other hand, value stocks, besides needing those two above-mentioned good decisions, “need an economic outlook conceptual framework over a multi-year forward time period to begin positing economic growth.”
When Woodstock assumed registered investment advisor status in the 1970s, the company managers at that time viewed their own investment history of trying to make these two good timing decisions and relatedly forecast a multi-year economic outlook. They decided to focus on growth investing. They hired people who love research and told them to put good companies with a growth bias into client portfolios. The company managers did not tell the investment manager which stocks to buy, just to find them. We have satisfied clients over that whole time period and made some clients very happy recently. If this article stirred up any questions about your portfolio, please contact your portfolio manager.
William H. Darling, Chairman & CEO
Adrian G. Davies, President