About Our Models: Growth

  • Description: For many clients, CapWealth’s Growth portfolio is their primary vehicle for investing in the domestic stock market and in companies intent upon reinvesting earnings in themselves in order to fuel growth. The model includes about 30 stocks.
  • Primary Aim: The primary goal of this model is to build wealth and combat the effects of inflation over time.
  • Selection Process: CapWealth’s Growth portfolio invests in companies of all sizes. Small- and medium-sized companies with considerable growth potential as well as large companies with competitive advantages are the focus of of this portfolio. This diversified portfolio is value-biased, seeking companies that are trading below our estimate of intrinsic value. With a long-term view when selecting companies for inclusion in this portfolio, and a greater number of positions than the Aggressive Growth model to decrease the volatility, the portfolio is expected to have low turnover and is sensitive to the tax impact on real returns.
  • Risks & Rewards: There is always a risk of capital loss when investing in the equity markets. This model portfolio looks to reduce risk by owning high-quality companies at reasonable valuations. Each client’s risk tolerance and investment horizon should be considered when determining the appropriateness of any investment.