Investment Strategy

Stillwater Investment Management takes a simple, straightforward approach to investment management and believes in the time-tested notion of compounding. Our focus centers on three primary principles: asset class and sector allocation, dividend reinvestment and periodic rebalancing. We believe strongly in asset allocation and use the three dominant asset classes: equities, fixed income, and cash and equivalents. Studies have shown and it is widely accepted that the majority of investment returns over a long period of time are determined by asset allocation.


Stillwater Investment Management concentrates on large capitalization companies that exhibit a blend of growth and value. We use individual stocks as well as low cost exchange-traded-funds (ETF’s) for further diversification and asset allocation. Equity investments are an essential component to investment portfolios because they have the ability to appreciate over time and provide a source of income through dividends. When appropriate, we include small and mid-capitalization companies primarily using index ETF’s.


As part of Stillwater Investment Management’s balanced approach, our fixed income strategy involves only high quality investment grade bonds primarily in three areas: US Treasury and Agency, Tax-Exempt Municipal and Corporate. We include preferred stocks and convertible bonds when appropriate for further diversification. Adjustments are made to portfolios based on changing interest rates and credit environment with particular attention paid to maturity dates, call protection, and portfolio duration.


For managing our cash, we access money market funds, certificates of deposit, and high quality short-term floating rate securities.

“Our objective is to maintain asset allocation in harmony with secular trends.”