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How we choose our stocks

By
Nicole White
August 14, 2017
5 min read
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Ever wonder how Swell chooses the stocks in its six portfolios? We get that question a lot.

Swell uses a rules-based approach to stock selection. We start with a universe of companies that have to meet certain financial and impact criteria.

From there, our portfolio development team closely evaluates the potential stocks with two things in mind: Purpose and profit. First, a company is screened to ensure that it makes a positive impact through its business. Just not doing bad isn’t enough, you also have to do good.Then, we take a look at how the business makes its money. We ask, what environmental or social issue are they addressing? Whether it’s making nutritious foods available to consumers, solving our energy needs, or working to cure cancer. It’s important to us that a company is doing good in addition to doing well.Finally, we dig into the valuation and the future plans of the business. It may be doing well now, but what are the plans for down the line, how will their plans contribute to their growth?Swell Investing is uncompromisingly selective. Our portfolios are made up of the companies that we believe to be the cream of the crop. Once the companies have been curated, the portfolios are weighted and balanced to optimize risk and expected returns.Things change, and we get that, so every quarter we take a look at our holdings and make sure they’re still up to snuff.

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