Investment Strategy
Our Approach
We are focused on investing in securities that will provide a rising stream of income to our clients while keeping the cost of investing as low as possible.
- We invest with a long-term time horizon.
- We invest, we don't speculate.
- We work to minimize trading costs and the overall cost of investing for our clients.
We focus on the following three main areas of investing:
Individual Stocks
We search for good businesses with sustainable models with strong histories of dividend growth, and with a history of returning profits to their owners.
Mutual Funds/Exchange Traded Funds (ETFs)
We focus on passive index funds and active management funds to provide diversification for asset allocation purposes. We are very focused on using mutual funds and ETFs with low expenses.
Bonds/Fixed Income
We focus on Individual Fixed Income Securities including Certificates of Deposit (CDs), US Government Bonds, Corporate Bonds, and KY Tax Free Bonds along with Bond Mutual Funds to provide income and stability for our clients. We use proven bond management strategies to provide safety of principal and improved interest income.
Long-Term Investing for Kentucky Families
At Foster Investment Services, we apply these principles consistently for clients throughout Lexington and Central Kentucky. Our investment strategy is not built around market-timing or speculation — it is built around the fundamentals of patient ownership, rising income, and disciplined cost management.
We believe that the most reliable path to building wealth over time is to own good businesses, minimize unnecessary expenses, and stay invested through the inevitable ups and downs of the market. For Kentucky families and individuals planning for retirement, this approach has stood the test of time.
Our bond and fixed income expertise is particularly relevant for Lexington-area clients seeking income and stability. We utilize Kentucky Tax-Free Municipal Bonds when appropriate, helping qualified clients potentially benefit from both federal and state tax exemptions on bond interest.
Remember: You can’t control the returns of the markets, but you can control your cost of investing.