Supporting Life, Liberty and Happiness

Introduction - American Hero Investing uses the discipline of time tested investment basics while incorporating integrity, diligence, humility, and caring. The process manages risk with diversification and by avoiding speculation. American Hero Investing is a concerted effort to be driven by faith and grace rather than fear and greed. Perhaps the greatest benefit is the alignment of investments with many of the same values America was founded which has the potential to create more wealth for investors and companies. More importantly, it has potential to help create more life, liberty and happiness for society at large.

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Portfolios - Currently, we have two portfolios described below:

1. American Hero Index - This portfolio consists of an equal weight of the 76 top-scoring American Hero Companies.
2. American Hero Equity - This portfolio consists of 20-30 stocks from within the American Hero Universe. They are selected based on the criteria listed below:

Portfolio Characteristics

1. American Heroes Only - First and foremost American Hero Investing only invests in American Hero Companies.
2. Long term - Long term means investing in a stock until a better alternative at a better value is available sometimes years.
3. Diversification - Diversification smoothes returns over the long term and captures more of the long term upside trend.  The American Hero Model will always contain some exposure to the top seven sectors of the market.
4. Concentration - Following the success of investment legends like Benjamin Graham, Philip Fisher, and Warren Buffet, we have found using a smaller number of high quality stocks has provided market competitive returns.  A limited number of stocks can be better understood and more closely monitored.
5. Equal Weight - By being equal weighted each stock has the opportunity to contribute to performance in a meaningful way.  It also allows for a blending of growth and value stocks.
6. Multi-Cap Blend - The universe of American Hero Companies (120+) covers a balanced and broad spectrum of the overall market.  As a result the portfolio is a multi-cap blend.

Active Management

1. Values Research - We have a team member, Benny Van Huss, whose sole responsibility is to identify American Hero Companies. He uses a proprietary process that has been developed and refined over many years. The Research committee must give final approval for the American Hero designation. Each company is reviewed annually.
2. Rebalancing - Rebalancing is a disciplined approach to selling high and buying low.  It will also shift allocation from over performing sectors to under performing sectors capturing any returns from mean reversion.
3. Stock Selection/monitoring - The American Heroes selected for inclusion in the portfolio are those that best enhance human well being in economically efficient ways.  Stocks are selected based on twelve fundamental metrics.

Performance

Although not our primary goal we recognize the preferability of competitive investment returns. Backtesting and our own historical track record seem to indicate that American Hero Companies have good potential for competitve, long-term investment performance. To view our latest performance figures click here.

Risks

There is substantial risk when committing funds to equity markets. We do not try to "time" the market and normally maintain 90-100% exposure to the equity markets within our American Hero portfolios. Past performance is no assurance of future results.