Focusing on Sustainable Growth

The goal of Girton Capital Management, Inc. (GCM) is to build wealth for our clients through skillful stock and bond selection. GCM believes that original, in-depth investment research of new and sustainable products and companies is the cornerstone of long-term capital growth.

Girton Capital Management, Inc. publishes the quarterly Girton Capital Growth Letter. The guiding principle of the Growth Letter is to find top-quality investments by discovering and tracking great growth companies. Each issue is dedicated to an investment topic or industry niche related to socially responsible and sustainable investing.

Girton Capital Management, Inc., founded in 1998, is an independent registered investment adviser which provides individual portfolio management and highly responsive personal service for our clients. Our President and Portfolio Manager, John Girton, Chartered Financial Analyst (CFA) was formerly Director of Research at Van Kasper & Company, a leading regional investment brokerage based in San Francisco. John has over 30 years of experience in investment research and has been quoted extensively by the business press. He was awarded a Wall Street Journal All Star Analyst for stock picking skill of computer software companies in 1994 and 1995.*

Girton Capital Management, Inc. is certified as a Marin County Green Business. This means we have taken steps to conserve energy and recycle waste.

THE POWER OF THE IDEA

Investing is about ideas. We think we can offer the highest value to our clients by discovering and investing in ideas which can offer powerful and sustainable growth. Management teams conceive of and implement new business ideas through companies that will grow over time. By buying ownership in a public company (equity), or lending money to it (bonds), investors can participate in the company's success over time.

A real estate investor's mantra is "location, location, location." We think a stock investor's should be "management, management, management." Our original research includes talking to management, visiting industry trade shows and comparing competitive products and we view this investment research as the core of what we do well. We like to see situations where an accomplished management team owns a substantial enough portion of the stock to be highly interested in its growth.

When considering growth investments, we look for an entry point that meets our growth and value criteria for "growth at a reasonable price" (GARP). We invest in companies we judge to be well-financed and well-managed with a solid business model and strong cash flow generation.

SUSTAINABLE GROWTH THROUGH SOCIALLY RESPONSIBLE INVESTING (SRI)

According to a 1987 United Nations commission, "sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs." Merriam Webster defines sustainable as "able to be maintained at a certain rate or level." We are always looking for new socially responsible investments in industry sectors that promote positive and sustainable change in business and the world, such as Alternative Energy, the "Best Companies to Work For," Clean Water, Climate Change and Pollution Control, Community Banks, The Internet and Social Networking, Organic & Natural Foods and Women-Managed Businesses.We favor companies with good employee relations, positive environmental records and sustainable businesses, while we avoid polluters, defense companies and tobacco companies, among others.

We believe that new sustainable trends, over time, will replace diminishing trends such as coal-based electricity, inefficient and polluting companies, and oil-based transportation, among others. As the new economy replaces old industries with higher value-added sustainable companies, we believe these new companies are likely to grow more rapidly with higher profit margins. In particular, we are looking for growth investments in sustainable companies that have the potential to return a multiple on investment over several years - and it only takes one or two such companies in a portfolio to greatly enhance performance.

We believe that socially responsible investing is good long-term business. We welcome the challenge of creating well-diversified portfolios to achieve competitive investment returns while meeting our clients' individual socially responsible goals.

MARKET ANALYSIS

We don't try to predict the direction of the overall market, although we believe that over time the market has an upward bias. We simply like to buy companies that we think are cheap relative to others in the marketplace. Therefore, we concentrate on investigating individual companies which have strong growth and/or income prospects, and buying them at the best available price. In our view, the market is overvalued when it is difficult to find a stock that is inexpensive to buy. However, we have learned over time that this situation rarely lasts very long, as either the market corrects or a new area of growth springs forth.

PORTFOLIO MANAGEMENT

We believe in portfolio diversification, including a mix of fixed income and equity securities, different industry groups, and a diverse selection of large, mid-size and smaller companies in portfolios. We construct portfolios to meet each client's needs, whether it is capital growth, total return, or income with preservation of capital. We consider the risk and return parameters of all of the client's assets to determine an appropriate asset allocation mix between cash, bonds, and stock.

We also study the major economic factors that affect the markets, such as changes in interest rates, inflation, gross domestic product and the price of energy, and consider what kinds of effects these changes may have on specific industries and companies.

OUR RELATIONSHIP WITH CLIENTS

We are always available to explain our investment strategy and are straightforward and easy to talk to. We manage investments for those who want us to take care of their investing for them. We hope that we appeal to the thinking and well-informed client. We are open to investment ideas from clients in the areas in which they are experienced. For example, we enjoy discussing new product ideas with a software engineer, new medical techniques with a doctor, and new business ideas with an entrepreneur. This information is vital to understanding the reality of the business world, and the products that work in it. Our core ideal is to provide service with integrity and good humor, and thereby to increase wealth while enjoying the process.

*Past performance is not an indicator of future returns.

Note: For more information on Girton Capital Management, Inc., please click below to read our disclosure form ADV Part II, which must be offered to clients before they open an account.

Click here to read our disclosure form ADV Part II, which gives you additional information about Girton Capital Management, Inc. (PDF file: requires Adobe Reader)