Investment Philosophy


We believe that client investment objectives can best be achieved through appropriate asset allocation and diversification to help control the level of risk. We believe that financially sound companies with solid operating histories and increasing dividend payouts can be excellent investments for longer-term growth. We are not short-term traders or market timers, as we believe that these strategies have limited potential for longer-term success. We seek to produce above-average returns consistent with the level of risk taken.

We measure our success by the progress made toward achieving each client’s investment goals and relative performance to various market benchmarks along the way.

At Peninsula, stocks are selected for long-term capital appreciation potential and secondarily, for income. Bonds and other income-oriented securities such as preferred stocks are purchased to produce income and help maintain principal stability. Cash is managed for liquidity, stability and income. We are dedicated to capital appreciation and income production, adhering to a philosophy of using high-quality investments.

Peninsula invests in individual stocks of larger, established companies that have demonstrated consistent and sustainable long-term growth of earnings.  Companies with an extensive history of consistent and increasing dividends are preferred. Companies must be financially strong and have the strategy, the flexibility and products in place that ensure continued growth.  Peninsula may also invest in exchange-traded-funds or exchange-traded-notes (often referred to as ETF’s/ETN’s) when appropriate for diversification into mid-cap and small-cap stocks, international equities, commodities and real estate.

Portfolios with a balanced or income-orientation may also contain U.S. Treasury securities, Government Agency bonds, corporate bonds and preferred stocks. Depending upon a client’s tax situation, tax-exempt municipal bonds may also be included. Our portfolios typically consist of bonds with intermediate-term maturities, such as those in the 2 to 10 year range. These maturities provide predictable cash flow and are not subject to the high levels of principal risk associated with long-term bonds should interest rates rise. Only "investment grade" bonds are purchased, as determined by one or more of the rating services.

We avoid investment strategies based largely on forecasting interest rates or market timing because they often lead to extreme volatility in absolute returns and inconsistent relative returns.