Core Twenty - Model Portfolio

Core Twenty Strategy Objective:

Maximum Long-Term Capital Appreciation—The Core Twenty strategy is designed to serve as a core investment strategy to achieve maximum long-term capital appreciation.

By carefully selecting 20 stocks across various sectors and investment styles, we aim to deliver strong, sustained returns that can serve as the foundation of your stock portfolio.

Our strategy is rooted in a blend of value, growth, and income-generating stocks, all chosen through rigorous analysis and time-tested methodologies.

Who Should Invest in the Core Twenty Portfolio?

The Core Twenty strategy is ideal for investors who:

• Seek long-term capital appreciation and are willing to invest in a diversified portfolio that combines growth, value, and income.

• Have a moderate to high tolerance for risk and understand the importance of a balanced, multi-faceted approach to investing.

• Are looking to build a strong, core portfolio that can serve as the foundation of their overall investment strategy.

*Note: We view the Core Twenty model as an alternative to owning the S&P 500 index. Over the past decade, the Core Twenty portfolio has provided returns in excess of the S&P 500 with approximately 5 to 10% less risk as measured by the portfolio beta.

How the Core Twenty Strategy Works

Our Core Twenty strategy is the culmination of decades of research and experience. Each stock in the portfolio is selected based on a rigorous analysis that blends various proven investment approaches:

• Large Cap Value: Identifying strong companies with solid fundamentals that are undervalued by the market.

• Growth at a Reasonable Price: Finding growth companies that offer substantial upside potential at attractive valuations.

• The Benjamin Graham Formula: Applying the principles of value investing as taught by the father of value investing himself.

• Dividend Growth: Selecting stocks that offer reliable and growing dividends, providing both income and growth potential.

We review and update the portfolio on a quarterly basis to ensure it remains aligned with its objectives and responsive to market conditions.

The Research Behind Core Twenty

The Core Twenty strategy is not just a product of our own experience—it’s built on the wisdom of some of the greatest investors in history.

We’ve studied the teachings and methodologies of legendary figures like Warren Buffett, Benjamin Graham, Peter Lynch, John Templeton, Julian Robertson, and Seth Klarman, to name a few.

By blending their insights with our decades of professional investing experience, we’ve developed a strategy that we believe can stand the test of time.

Benefits of the Core Twenty Strategy

• Diversification: With 20 to 40 carefully selected stocks, the portfolio provides exposure across various sectors and investment styles, reducing risk while maximizing potential returns.

• Long-Term Growth: By combining growth, value, and income-generating stocks, the Core Twenty strategy is designed to deliver strong, sustained capital appreciation.

• Proven Methodology: Our approach is grounded in the teachings of legendary investors, offering a reliable and time-tested path to wealth creation.

Risks and Considerations

While the Core Twenty strategy offers the potential for strong returns, it’s important to understand the associated risks.

While the portfolio is diversified across 20 holdings, it has more concentration risk potential than a broader index like the Russell 3000 or S&P 500.

The portfolio balances growth with stability, but market risk, sector risk, and periods of underperformance are always possible. Investors should carefully consider their own risk tolerance and financial goals before investing.

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