Bringing it Home®
Community Trust and Investment Company…Bringing It Home. It means that we put you first. Your dreams‚ your future. Our client centered approach means that you have a team committed to the same purpose you are. We take time to get to know our clients. Our local presence has multiple benefits for our clients right here at home.
Community Trust and Investment Company is an integral part of Community Trust Bancorp Inc. We are a part of the community‚ so the decisions are made right here. You don’t get an automated line when you have questions. You talk to the person entrusted to take care of you.
Our team of financial professionals focuses on helping our clients attain their financial‚ business and retirement dreams. And with our global network of tools and resources you can rest assured that we will construct a financial plan specific to your unique objectives.
Equity Strategy
Equities
Our investment staff screens the universe of equity research sources to devise a major interest list of
between 200‐300 issues. From this list we construct model portfolios, which are diversified by industry
sector and issue, while consideration is given to earnings, valuation, quality of capital structure, growth
prospects, management, dividend yield and relative attractiveness based on economic outlook.
Buy Philosophy
We believe that the key to profitable equity investing is not only the business or stock chosen, but the price paid for that investment.
We focus on buying quality companies at or below their intrinsic (true underlying) value while recognizing the difficulty in quantifying in mathematical terms the intrinsic value of an ongoing business.
We use traditional valuation metrics in assessing the proper price to pay for a stock and consider the price paid in relation to a number of factors such as earnings (P/E), cash flow (P/CF), and earnings growth (PEG).
Our equity selections are based not only on financial strength and financial metrics such as return on equity (ROE), return on assets (ROA), and dividend yield, but also consider strongly the quality and integrity of management as well as the relative attractiveness of the underlying business.
We recognize that in the short term, markets are not always rational or efficient, and can be driven by the forces of fear and greed. However, in the long run, markets are efficient and provide excellent returns to those who patiently acquire good businesses at attractive prices.
Sell Philosophy
We will sell a stock when…
• Fundamental principals of why we bought the stock change.
• The valuation has become stretched beyond a prudent level.
• There is a better investment opportunity in the industry.
• Fraud, deceptive accounting or hidden problems surface.
Research
We screen independent research sources for new stock ideas to add to our portfolios. Current research
sources are ISI, Strategas, Ned Davis, Morningstar, Northern Trust and Value Line. In addition, we receive
research from all significant Wall Street firms.
When There Is Nothing To Do,
Best To Do Nothing
One of the greatest ironies of active management is that oftentimes inactivity is one of the most profitable activities in which we can engage. As I think back over the years, it pains me to recall that many of the accounts I touched the least actually did the best. A vivid reminder for all portfolio managers is looking back and realizing that there are really few trades that actually made the difference. -read more
Indicators Signal
Recovery’s Fragility
Surveys from Federal Reserve banks in New York and Philadelphia pointed to weakness in those regions’ factory sectors, bucking a positive trend. Ugly news from Europe, slower growth in China, concerns about U.S. Budget Deficits and lack of confidence in our political leadership is weighing negatively on business sentiment. On September 21st, these trends were brought to a head by the Fed’s pronouncement that confirms to the market that it also saw “significant downside risks” in the market. -read more
Investment Outlook
GOLD & DOLLARS:
So the question that gets asked constantly of a portfolio manager in today’s investment climate is: “Why don’t we own gold (silver)?” or in other circumstances: “Shouldn’t we buy gold (silver) now?”
Besides making the obvious point of buying assets prior to the price tripling, the question is best answered with a question: “Is gold really going up, or is our currency going down?”… -read more
Famous Quote
“If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes.”