Our equity investment process starts by seeking companies that possess a minimum of $1 billion in market capitalization, as well as annual sales of at least $200 million. The purpose of this initial filter is to eliminate companies that are categorized as small companies, or those that have not established their viability with a demonstrated sales history.
Next, we focus on both qualitative and quantitative aspects of a company. Qualitatively, we examine companies for industry attractiveness, market dominance, quality of management, pricing power and investment research and development. Quantitatively, we set minimum hurdles for earnings per share growth, sales growth, return on equity and projected earnings per share growth. Once these screens have been applied, we are left with approximately 120 stocks, which we refer to as the Davidson Master List.
