We are old school…
Growth at a Reasonable Price since 1964!
For over 50 years, Rudy North has invested according to his “Growth at a Reasonable Price” investment philosophy. This philosophy is the cornerstone of North Growth’s business.
We look at growth on a long-term basis. We examine the companies we consider individually and in great detail. We review their balance sheets, their income statements, their management team.
Ultimately, we invest in solid, growing companies that have reasonably priced stocks. We buy shares in companies with strong, long-term growth potential but whose stocks are undervalued by the market due to short-term factors. We utilize traditional valuation metrics, most notably price/earnings (P/E) ratios, to valuate stocks.
Fundamental research is critical to our fund managers’ decision making process. A solid knowledge of a company’s operations is required in order to be able to assess an organization’s long term growth prospects. The free flow of ideas and sharing of research required to make intelligent investment decisions is facilitated by our open office layout.
We steer away from stocks that are overvalued. That’s because although a company’s earnings might be expected to grow long term, valuations based on price/earnings levels can’t be expected to grow indefinitely. Historic records clearly show this.
Managing our money alongside that of our clients
Having our own financial interests completely aligned with those of our clients has always been a core company value, so much so that our fund managers are forbidden as a matter of company policy from investing in stocks personally outside of the North Growth funds, and all portfolio managers carry major personal investments in our funds.
We are incredibly motivated to succeed – for our clients’ sake and our own, and we pay the same fees, receive the same distributions, and benefit from the same performance returns as our clients. We believe that our complete alignment of interests and high level of transparency just makes good sense.