AFA Financial, Inc.
Investment Managers and Advisors
P.O. Box 33189
North Royalton, OH 44133
ph: 440-838-0800 / 800-837-1907
fax: 440-838-5255
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Our Investment Process
We manage our portfolios around a model which usually contains 20-25 mid and large cap cyclical stocks. When we buy or sell for the model, we make the same changes in our client portfolios. Due to timing and cash balance, few of our client portfolios own every stock in the model. However, performance of the model stocks are closely replicated in our portfolios.
Stock Selection
A universe of dividend paying stocks is screened for several basic criteria. The stocks that meet our basic screens are then analyzed for negative characteristics that will eliminate them from further consideration. finally, we set target purchase prices for the stocks we would like to own. If they reach our target prices and we have space in our portfolios we buy them.
Stock Sales
We set sell target prices for each stock at the time we buy it. If we don't reach our target price on the upside after owning a stock for a reasonable period of time, we sell it and reinvest the proceeds. On the downside, a 20% loss is the limit, unless we have a market meltdown. At that point we have to decide what stocks go and what we hold for the recovery.
Securities in the portfolios are constantly reviewed for changes in their fundamentals that would cause them to no longer meet our investment criteria. A stock that no longer meets our basic criteria is sold.
Communications
P.O. Box 33189
North Royalton, OH 44133
ph: 440-838-0800 / 800-837-1907
fax: 440-838-5255
info
