The Schloss Approach in Brief

Philosophy and Style Investors are best served using a Benjamin Graham value approach, looking for stocks that are hitting new lows and those trading at a price lower than their book value per share. Universe of Stocks Stocks are selected from among well-known “Campbell Soup” companies. Exclude foreign stocks and those in industries with which the investor is unfamiliar. Criteria for Initial Consideration • Ten-year track record • No long-term debt • A low price-to-book-value ratio • A stock at or near its 52-week low price • High insider ownership Portfolio Construction • Limit holding of one stock to no more than 20% of entire portfolio • Well-diversified portfolio of up to 100 stocks • Holdings weighted based on their perceived values, putting less money in positions the investor is less sure about • Use limit orders to purchase stocks Stock Monitoring and When to Sell In general, try for a 50% profit from any holding before selling. If a stock’s price is falling and the company’s fundamentals are sound, buy more.