SageInvest,Inc.

"A Vision of Financial Security"

Investment Philosophy

The Investment Manager adheres to the following investment management principles in researching securities and managing portfolio.:

1. We will not lose our hard earned savings through our investments. We will minimize any risk of loss of principal by doing thorough research and by making disciplined investment decisions.

2. We will follow a multi-style investment strategy:

A) Core Portion (60% to 80% of the portfolio).  We will invest to become part owners of a great business.  Therefore, we will buy high-quality stocks for the long term.

B) Trading Portion (0% - 20% of the portfolio).  We will trade in SageInvest stocks to try to  take advantage of the market volatility.

C) Hedging Portion (0% - 20% of the portfolio).  Depending on market conditions and/or the  risk tolerance of the client, we may hold cash, bond ETFs, or ETFs that short the market to try to minimize the downward impact of market corrections and bear markets.

3. We will buy great companies for our Core Portion at reasonable or better stock prices. They will usually possess most of the following characteristics:

 

*     High Returns on Equity                                         *     High Financial Liquidity

*     High Profit Margins                                                *     Low Debt Ratio

*     High Growth Rate                                                  *     A Stock Buyback Program

*     Revenue greater than $ 500 million

*     Positive & Growing Operating Cash Flow

*     Market Leadership With Significant Competitive Advantage(s)

*     Honest, Capable and Focused Management

*     Significant Inside Ownership of the Company ( & preferably with the Founder

       as CEO)

4. We will buy American Depository Receipts (ADRs) of foreign corporations to diversify our exposure to the U.S. Dollar.  In addition, we will buy Exchange Traded Funds (ETFs) to gain exposure to certain sectors of the economy and/or to hedge the portfolio.

5. We will hold between 10 to 25 securities, depending on the size of the portfolio.

6. We will sell a security when the original reasons for buying it are no longer valid or when another, better opportunity comes along.  In addition, we will sell a security if it is grossly overpriced or if it is not appreciating as expected.  Finally, in some situations we will consider tax loss selling.

7. The Investment Manager will also invest or may already have invested his own funds into the same securities and ETFs that he recommends for SageInvest clients.

8. We will not accommodate client request to buy specific securities that are not recommended stocks of SageInvest.