American Research & Management Co.

Portfolio Management
Stock Selection Process
Bond Selection Process
Risk Management
Sell Criteria

Stock Selection Process

We don’t trade stocks, we buy businesses we want to own – and our investment selection process reflects that philosophy. American Research & Management Co. focuses its efforts on identifying high quality companies whose financial strength and strategic vision provide maximum potential for long-term capital appreciation. Using traditional fundamental analysis and quantitative metrics, we analyze a company’s business strategy and market position, assess its prospects for revenue and earnings growth and margin expansion, and compare its attributes to others in its industry. We evaluate management’s integrity, vision and long-term track record of success, and we assess how the company will benefit from global macro trends and themes.

Our objective is to purchase outstanding businesses when they trade below their intrinsic value – generally when they are out of favor, overlooked or not yet recognized by Wall Street. We plan to hold them for as long as our investment thesis holds true.