Equity Philosophy Business cycles exist but vary in intensity. All companies are cyclical. Companies must be self-financing. Companies need a competitive advantage. Smaller companies grow faster. Individual issues are preferred over funds. Expenses should be minimized. Fixed Income Philosophy Fixed income is for income, not growth. Use to control risk. Buy good quality and avoid long-term issues. Use to establish a predictable cash flow. It is impossible to predict interest rates. Trading a bond portfolio is expensive.