QRLT Investment Process

Q - Quality:

Numerous studies have shown that high-quality securities have beaten low-quality over the long term and tend have lower volatility. All purchases must pass these three criteria:

1. Good Value: Paying an attractive price increases the likely future total returns

2. Healthy Cash Flow: A company with a history of healthy cash flow is more predictable and has the ability to grow and pay dividends.

3. Liquid: We invest in assets that allow fast access to the proceeds at a fair market price.

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R - Rule Based:

A disciplined, evidence based system reduces emotional investing mistakes and creates a repeatable process.

• Risk Management : A stop-loss discipline is important in preserving capital and reducing emotional investing mistakes.

Up Trends: By investing in the general direction of uptrends we seek to participate in bull markets and avoid a portion of declining trends.

• Sentiment Extremes: By monitoring investor sentiment indicators we seek to take advantage of times these emotions reach extremes in the financial markets.

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L - Low Cost:

Keeping costs low can create a significant financial difference when compounding returns over many years.

• Utilize low cost, commission free ETFs and low commission stock trades.

• Limiting the frequency of trading helps reduce trading costs.

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T - Tax Sensitive:

No one wants to pay unnecessary taxes.

• New accounts will be transitioned to our strategies over time to reduce potential tax implications.

• Legacy concentrated positions with sizable capital gains can be managed to reduce taxes.

• Our advanced trading software allows for security equivalents to be used on legacy positions to reduce the number of trades needed.