Verity Investment Philosophy Page 4

way to improve his performance and lower risk during a full bull and bear market cycle. Dale went home feeling very comfortable with his new investment strategy.

How did Dale's portfolio perform? From January 1995 to March 2003, Dale's portfolio had an average annual return of 8.9%. Even though Dale's portfolio is less risky than both Andy and Mary's portfolios, his performance was actually better.


	Performance %				Bear Mkt	Bear Mkt
	2000	2001	2002	1st Qtr, '03	Total %	Total $
Andy	-7.7	-12.3	-17.0	-4.5	-35.8	-450,016
Mary	1.5	-3.4	-11.7	-4.1	-16.9	-169,389
Dale	6.9	-0.5	-1.0	-0.3	4.9	46,894

Investment Growth Chart.......blow up chart

This story about Andy, Mary and Dale illustrates the foundation of our investment philosophy: proper diversification. With a solid foundation under- << >>