As organizer of the Marietta IBD Meet-up, I think I should share the trading and investment approach used by Thornton Investment Advisors (TIA), the firm I founded in 2005.

At TIA we use the IBD/CANSLIM system, modified slightly based upon experience and our individual clients' needs. We buy equities based upon both fundamental and technical analysis but sell almost exclusively on technical indicators. All our investments reflect CANSLIM charactistics:

-Earnings and composite ratings above 90%
-Strong relative strength
-Top industry groups
-Superior ROE, balance sheets, and debt to equity ratios
-Accelerating revenue and earnings growth from companies that are breaking out of solid bases


Fundamental analysis is important, but TIA cannot develop an edge over the big firms in this area. They have multiple analysts looking at each industry, and I don't pretend to be able to beat them in this area. However, we do have a large advantage over the institutional investors; the ability to quickly move in and out of positions as the market dictates. Technical analysis and chart reading are the primary tools used to expolit this advantage.

TIA focuses on trend trading, taking advantage of major market moves. We get invested in the most promising equities during confirmed rallys. We move to cash or use hedging techniques to preserve capital during corrections and bear markets. TIA generaly buys individual equities but use ETFs to provide diversification and take advantage of special industry or global opportunities where individual stock picking is risky. We also have some long term holdings for more conservative clients or where appropiate for tax considerations.

We use strict written buy sell rules. These rules come about 80% from CANSLIM, but they are modified based out investing history. A detail post mortum is performed on each trade to identify weaknesses, and to ensure that our rules reflect current market trends. This process continues to improve, our already superior performance. Proven money management, diversification, and position sizing techniques are used to limit down-side risk during market corrections.

TIA is a registered investment advisory firm. We operate on a fee-only basis; there are NO comissions. We are not tied to any product provider, and our pay is directly aligned with growing our clients' accounts. TIA focuses on investment management. We do not sell insurance, provide accounting services, or give estate planning advise, although we do refer clients to qualified experts in these areas, or work with their existing team. If you want to learn more, visit our web site, www.thorntoninvestmentadvisors.com