Investment Strategy

SCM Associates investment strategy is to invest mainly in the common stocks of widely-recognized, well-managed companies that have earned positions of leadership in their individual market sector by providing outstanding products or services over decades. SCM seeks to purchase stock in these franchise companies at or below their calculated fair value according to a proprietary analysis system. SCM holds these stocks as long as they maintain their financial strength, superior management, and dominance in the marketplace. On the other hand, SCM will sell all or a portion of a stock position when the stock price far exceeds the earnings support, earnings growth stalls, or the company no longer maintains its position of dominance in its industry.