We screen the many companies that form our investment universe, to establish a “watch list” of select companies we find attractive for investment under the right circumstances and valuations. For each individual stock we select or consider for investment, we compile and continuously analyze hundreds of data points from myriad sources. While we attempt to define broader, long-term macro-economic trends that influence the growth potential of prospective companies and industries, our approach is rooted in bottom-up fundamental research. We extensively review company balance sheets and fundamentals, and our research and portfolio management staff interview executives, employees, suppliers and competitors. We typically will select twenty-five to thirty companies we believe offer the greatest potential for long-term growth.
Each portfolio is uniquely structured to meet the needs of each particular client. We build positions strategically based upon current valuations and long-term prospects. Risk from stock selection is carefully monitored. At Baxter Investment Management, we believe that we can achieve superior long-term returns for our clients as a result of our disciplined approach to portfolio construction, high quality research, active portfolio management, and tax sensitive investing
Stocks, Bonds or Both
We construct and manage stock and bond portfolios. Most of our clients maintain a portfolio containing both stocks and bonds. Of course, specific allocations will depend on each client's particular needs and tolerance for risk.
Our Investment Philosophy
Managing risk is the key to successful wealth management, and our basic philosophy has been honed over 90 years and three generations of financial professionals.. We are not constrained by styles such as growth and value, or market capitalization limits such as large cap, mid cap or small cap. We will invest where we believe the best opportunities for long term growth lie. We are sometimes described as a “Core” manager or a GARP (growth at reasonable prices) manager. Regardless of labels, our objective is to identify compelling values that we believe will generate attractive returns on capital for our clients.
We employ a rigorous and disciplined screening process that is designed to identify high quality companies with strong balance sheets, consistent earnings growth, sound management, and strong potential for long-term growth. We believe in utilizing a patient approach to investing, where individual stock selection is paramount, rather than sector or market timing. We pay careful attention to the valuations and earnings multiples of every company we own or consider for investment.