Author: Ticker Magazine
123jump.com
Last Update: 7:46 AM EST November 09 2006

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Richard Earnest		“We are looking for 12% total return from the current price because we believe that’s a reasonable number given the long-term returns of the stock market. Our first test is the ability of a company to demonstrate that kind of return potential based on conservative assumptions.”
		HighMark Value Momentum Retail A Fund

If you buy companies at appropriate valuations, you should do better than the market over time while taking less risk. This philosophy may sound simple to understand but is hard to execute. For Richard Earnest, co-manager of the HighMark Value Momentum Fund, it means conservative five-year forecasts on 700 companies, various estimates of their worth, a thorough understanding of the key issues, awareness of the downside risk, and a top-down view on the world.