At Davis-Ross, we practice a form of investing that is rooted in the philosophy of Benjamin Graham and popularized by Warren Buffett. Our approach involves identifying and investing in fundamentally sound, financial services companies that trade at significant discounts to their intrinsic value, thereby offering a substantial profit opportunities and an appropriate "margins-of-safety" (or hedging against large declines).

Why "banks"? We prefer to invest in companies that are relatively simple and stable in character and that we can understand. Currently, there are more than 8,000 bank holding companies, banks and thrifts nationwide. Over 1,000 of these companies are publicly traded.

Strong regulatory oversight and geographical diversification make publicly-traded, financial services companies an attractive choice for investors seeking a competitive, risk-adjusted return. In fact, few investors have recognized that the Nasdaq Bank Index, which serves as a reasonable proxy for our investment style, has outperformed the other major indices including the DJIA, S&500 and Nasdaq Composite during the past thirty years on the basis of price appreciation.

I invite you to consider Davis-Ross.