Buy and Sell Disciplines

Buy

• Above-average EPS or revenue growth
  
• Catalyst for stock to appreciate
  
• Initial purchase of a 2-3% position
  
• Usually 25-35 stocks within a portfolio

• When investment rationale changes
  
• The projected growth rate has a negative change
  
• The catalyst we identified no longer exists
  
• Valuation becomes less attractive
  
• A stronger candidate replaces it
  
• Trim to manage stock-specific risk