EQUITY STRATEGY

Brick Wealth Management offers a value-based strategy when investing in equities. The goal of capital appreciation is achieved through identification of high quality stocks of companies in undervalued sectors of the market which possess sustainable competitive advantages and the prospect of future profitability at reasonable prices.

In each industry or economic sector we are seeking those companies with the strongest franchises and the most promising prospects for future growth at reasonable valuations. Economic analysis is the first piece of the investing puzzle. Following a broad assessment of the direction of the U.S. and global economy, we determine those sectors which we feel are poised to benefit. Based upon our assessment, certain sectors may not have any allocation to equities if they do not meet our criteria.

Given our macro-economic assessment, we then look to companies in the sectors we have selected to benefit from the economy going forward. Companies which meet our criteria from fundamental analysis are considered for client portfolios. Equity candidates must have inherent financial strength reflected by strong balance sheets, sufficient liquidity and sustainable cash flows, all of which are among the factors reviewed before a buy decision is reached. Common stock dividends also play a vital role in the decision-making process, and while important, they are not the determining factor for selection. Our stock portfolios are comprised of core holdings with attractive valuations relative to their industries. Our equity allocation in portfolios is comprised of 30 different company stocks in over 10 different sectors. In addition, exchange traded funds (ETF’s), closed-end mutual funds and open-end mutual funds also may be used to gain exposure in areas such as commodities or country-specific sectors.