City, State Zip
Dear Client First Name:
It probably passed you by without much notice, but June 21 marked the start of summer. While the day itself
meant very little, the seasonal change has a momentous impact on most people’s frame of mind as they shift
from the busy days of spring to the lazy, hazy days of summer.
As I write this letter, the financial markets are experiencing an attitude shift of their own as the growth mentality
that had dominated most investors’ approach has begun to incorporate an increasing respect for a value
Growth investors typically look for companies with above-average earnings and profits, which they believe will
continue to grow higher in the future. These investors are willing to pay a multiple of current earnings for that
possibility. Value investors generally invest in companies whose market price in essence reflects a discount to
its true market value, but these investors believe the markets will eventually recognize the value.
While the two philosophies might seem at odds with one another, the appropriate mix of both growth and value
investments (among other investments) is essential to a well-structured portfolio. The resulting diversification
enables you to take advantage of the markets regardless of which way they are moving.
Of course, during certain periods, when conditions favor one extreme over the other, two things tend to
happen: investors can grow anxious (as they see others in more risky portfolios making greater gains), which
can lead them to increase their exposure to whatever is temporarily in favor. At the same time the portion of
your portfolio in favor grows disproportionately to the rest.
With the heavy emphasis on growth investments over the past few years your portfolio may have become over-
weighted toward growth, which makes this a perfect time of year to revisit your objectives and rebalance your
So as you look for ways to stay cool in the summer’s heat and humidity, I encourage you to make an
appointment to visit my air-conditioned office to discuss your portfolio.
P.S. Please call me at (000) 000-0000, if you’d like to learn more about value investing and how it can play a
part in your financial picture.