Montgomery Brothers believes that discipline plays an integral role in the investment decision-making process. We work with each new client to identify financial objectives that are within the individual's risk tolerance. Next, we develop an investment strategy, which includes the new client's long-term goals and asset allocation guidelines. Asset Allocation is a key factor in investing client assets.  Cash equivalents play a small role, and bonds somewhat larger, with equities being the cornerstone of all growth investment plans.

Montgomery Brothers is primarily interested in the long-term investment outlook. We examine demographic, political, social and economic trends in order to develop investment strategies for our clients. Our experience indicates that the financial markets do a better job of forecasting the economy, than vise versa. Along with our own economic research, Montgomery Brothers employs econometric tools to help develop the secular and cyclical economic framework for our investment strategies.

Montgomery Brothers uses both a top-down and bottom-up approach to equity selection. The top down part of our effort involves identifying the sectors and industries of the economy that appear best situated from a long-term investment perspective. Our "bottom-up" selection process identifies companies that exhibit above average earnings growth characteristics. We then invest in the most reasonably valued growth companies operating in the sectors of the economy that we believe show the best opportunity for growth. Montgomery Brothers' approach to equity ownership is to buy growth stocks when their shares are reasonably valued, regardless of capitalization. We do believe, however, that smaller companies can often grow their earnings at a faster pace, albeit with potentially higher risk. We look for:

	•	Companies that have had long-term earnings growth which has been and is expected to be superior to that of the S&P 500 and/or the industry in which the company operates.
	•	Companies that consistently operate at high levels of profitability and achieve above average returns on equity while maintaining conservative financial structures.
	•	Companies whose management is focused on increasing shareholder value. (This is usually reflected in top management owning significant amounts of their company's shares.)
	•	Companies that are industry leaders with superior products, services or other competitive advantages; or companies that operate in defendable niches.
	•	Companies whose shares are reasonably priced compared to forecasted earnings growth rates and/or to their historic valuation relative to peer industry competitors or to the S&P 500.

	•	A company no longer meets our selection criteria either from a fundamental change in the company's outlook or due to excessive valuation; or when
	•	better investment opportunities are available.