Our Criteria for Investment Selection

We call ourselves wealth managers; rather than investment advisors, because we think that the preservation of our clients’ wealth is our most important duty. To that end we have devised an investment selection process designed to limit risk.

To simplify the process and provide us with as much control as possible we put our clients’ money in stocks using the covered-call strategy options outlined above. We invest in stocks because they are easy to understand and can be quickly sold if problems arise. This provides an added layer of wealth protection for clients.

To protect our clients’ money every investment we make meets the following criteria:

  1. Options premium that has a rate of return on equity of at least 2% monthly and a monthly downside protection ranging from 3-5%, depending on the portfolio. This beats the rateof inflation and seeks to ensure a growing stream of income.
  2. Stocks that have a market capitalization of at least $2 billion. This eliminates the risks inherent to small-cap stocks and the volatility such equities often generate.
  3. Stocks that are expected to increase in value by 10% over the next 12 months by the majority of stock analysts.
  4. Stocks that have received a score of at least 2.4 from Zack’s Investment Research ; one of the most respected firms in the industry. The highest score that Zack’s can give is a 3.0 or “hold;” a score of two of is a “buy,” while one is considered “strong.”
  5. The stock must have a trade volume of at least 250,000 shares a day. We insist on this because that generates significant amounts of media and analyst attention that we can follow. That provides us with enough data to adequately analyze the stock and make an informed opinion about it.

Strategies use to Protect Your Wealth

We add extra layers of protection by using the following common sense investment strategies:

  • Diversification: we allocate no more than 4% of a client’s portfolio in any one stock to limit risk. To further reduce risk, we never invest more than 20% of any portfolio in any one sector.
  • Using a variety of call option strategies; including Out of the Money (OTM), At the Money (ATM), and In the Money (ITM). This enables us to react quickly to changes in the market. Each of these strategies provides another level of diversification and an added layer of protection for your money.


As with any investment keep in mind no investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.


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