Socially Responsible Investing

At First Houston Capital, our investment policy includes evaluating companies for any negative practices that might damage our invested capital. For example, we don’t invest in companies which produce harmful products. Therefore, we do not buy tobacco stocks. We also avoid companies which have been poor stewards of the environment.

We shun companies with a track record of poor profitability and high cyclicality. We also avoid companies that are tightly regulated or partially owned by government.

We avoid companies where there is evidence of excessive management control of the voting rights of the company or where executive compensation is well above the norms for its industry. We steer clear of companies where there is evidence of weak corporate governance.

Time and resources do not allow us to conduct extensive investigations into all aspects of social investing, thus some of our decisions about social responsibility are highly subjective. Nevertheless, we believe our clients are best served with their money in quality companies which demonstrate consistently good citizenship.