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Often, investors sell quality investments during market declines because of emotional reactions. Later they get back into the market when it's up and prices are higher. They're paying more of their hard-earned wealth for a lesser share of the market because of an . . .
| Emotion 1 | You watch a stock moving up. (Anticipation) |
| Emotion 2 | You make the buy. (Greed) |
| Emotion 3 | You check the paper daily as the stock goes sideways. (Impatience) |
| Emotion 4 | Then what? Right! The stock's price goes down. (Concern) |
| Emotion 5 | It continues to fall. (Fear) |
| Emotion 6 | It plummets below the price you paid for it. (Panic) |
| Emotion 7 | You sell. (Relief) |
| Emotion 8 | You check the paper and see that stock's price is rising. (Anger) |
| Emotion 9 | It goes above the price you previously paid for it. (Anticipation) |
| Emotion 10 | You make the buy. (Greed) |
Dover's portfolio management effectively eliminates one of the main impediments to successful investing . . .EMOTIONAL OVER-REACTIONS! We accomplish this by following our strategic selection process . . .
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Large Cap Value Discipline (142K) |
Utilizing a value-oriented approach to stock selections and sales, the Discipline seeks high quality companies who are doing things right, but whose stock prices do not yet reflect their success. Dover's value philosophy bases its buy/sell decisions on four criteria: rising earnins expectations, low relative price to earnings (P/E) valuation, improving profitability, and low historical P/E valuation. Stocks passing all four screens are considered buy candidates and will be further evaluated to establish quality nd appropriateness for the portfolio.
| 1. Deterioration of Fundamentals | Violation of one or more of original buy criteria. |
| 2. Performance | Under-performing the market by 10%. |
| 3. Exposure Reduction | Position becomes too large relative to remaining portfolio (i.e., a diversification concern.) |
Dover's Investment Strategy Group directs all investment decisions based upon the Dover Discipline combined with continuous fundamental research and economic and market analysis.
Copyright © 1999 Dover Partners, Inc.