THE INVESTMENT PROCESS

Step 1:  TVM Screening:

• TVM identifies and ranks all securities that meet four basic criteria.
• Securities are comparatively valued over 15-, 10-, 5- and 3-year time periods and ranked based on valuation.
• There are four possible rankings: BUY (historically undervalued), ACCUMULATE (fairly valued), AVOID (mildly overvalued) and SELL (historically overvalued).
• Securities ranked BUY or SELL are passed on to our propriety TVM Fundamental Analysis Process.

Step 2: TVM Fundamental Analysis Process:

• Process is designed to avoid false signals that do not reflect view of future expectations.
• Proprietary fundamental analysis confirms fundamental criteria.
• If a security passes both the TVM Screening and the TVM Fundamental Analysis Process, it is passed on to the Investment Committee for review.

Step 3:  The Investment Committee

• The Investment Committee compares findings of the 2-step TVM process to our own macroeconomic view of the investment world to ensure that our scoring process matches our expectations for the future.
• If the Committee accepts the findings, action must be taken.
• A BUY must be bought, and a SELL based on valuation means we must sell 25% of our holdings. Any security that no longer meets our fundamental analysis must be sold outright, regardless of rank.
• No transaction can take place until the final stage of the process is complete.

Step 4: Technical Analysis:  

• Once a purchase or sale decision is made, the transaction is made only after we employ our technical analysis model to attempt to make the best trade possible.
• Our technical process, the final step, helps determine the best price likely to be seen for execution of our order.

For a complete discription of how we implement our decisions, please see our BUY, HOLD & SELL DISCIPLINES.

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