The Bender Model is the result of over four decades of work. This proprietary analysis and screening process is designed to identify and develop a deep understanding of high-quality companies with higher probabilities of sustaining greater than economic and market growth over a long period of time. Robert Bender & Associates acquires equity positions in these companies with the intent to hold them for a long period of time in order to achieve exceptional capital appreciation for our clients.
The process begins with extensive in-depth research into companies and industries we believe will experience superior growth based on a new technology, a fundamental shift in consumer behavior or other market-moving event. In addition to searching for information available online, research may include attending conferences, on-site visits to company headquarters and/or business locations, and information from company conference calls, press releases, periodicals, and corporate and industry contacts. At this point a judgment call is made about how best to participate in any targeted opportunity and one or more companies may be selected for screening and further review.
We have developed rigorous criteria for all of our investment strategies. As stock performance is largely fueled by earnings growth, we believe companies earning adjusted net income is paramount to a companies success in the equity markets. As a result, we invest primarily in companies that have achieved profitability and generate positive operating cash flows. Our stock investments are typically the leaders in their respective industries.
Once a company is determined to be an investment candidate for our client portfolios, a risk/reward analysis is performed and an investment thesis is developed. The thesis serves as a road map for future growth for the company. It specifies product development and launch schedules or store opening schedules and will help us monitor and ensure the company’s growth rate remains as anticipated.
At the completion of this due diligence, our over forty years of investing judgment is tapped to decide whether a particular company will be included, and an appropriate entry point is sought. Once in a client portfolio, we closely monitor the company’s performance against the investment thesis. If its performance exceeds expectations, we may decide to add to existing holdings. Conversely, if a company’s performance begins to violate the investment thesis, the company holding will be watched for possible elimination from portfolios.