June 1, 2001

Suncoast Equity Management (SEM) is now ranked in the top 19% for investment performance in this country since inception through the period ended December 31, 2000. This ranking is reported by Effron/PSN, a national performance reporting company and is from a universe of over 2,400 domestic equity composites/funds representing approximately $3.3 trillion in assets.

SEM's year-to-date, three year and since inception client investment results listed below:

Today investors are uneasy and they are spending a great deal of time asking questions - "When will the stock market go back up?" "When will the economy turn around?" "Is now a good time to buy energy stocks or should you buy the beaten-up technology stocks?"

People have always been concerned with the future and they very much want to believe that someone can help them predict a future. The more uncertainty there is the more people want to rely on the "expert."

I recommend that you resist asking these types of popular questions. Turn off CNBC, your relative, neighbor, co-worker etc., as they tell you their opinion on the market's and economy's direction over the next week, month or year.

If you have an investment advisor or broker that gladly gives you the stock market prediction or economic forecast, fire them. I would estimate that 99% have either their own opinion or the firms' forecast at their fingertips. As Warren Buffett once said, "… the only value of stock forecasters is to make fortune tellers look good."

Intelligent investing does not require predictive powers to these near-term issues. Intelligent investing is about considering yourself a part owner of corporations in which you share in business profits for the many years ahead, not just for the next two months or two years.

If you do not have time to research companies yourself or you do not have an advisor who is able to, than find one with a good track record that will. SEM has developed the proprietary SEM - Disciplined Investment System (SEM-DIS) that provides this service of researching, valuing and investing in a select group of high quality companies for its satisfied clients.

Most stock market participants concern themselves with the daily weather, and spend little time understanding the climate. A quick observation illustrates this idea; when I relocated to Tampa from Connecticut the first few days of weather were hot, sticky and accompanied by severe thunder and lightning storms. This seasonal weather, during the first few days, clouded a more reasonable assessment I developed over the succeeding months that Tampa offers a much more desirable climate than Connecticut for my lifestyle.

The weather changes daily in the stock market but the long-term climate changes significantly less so and is more understandable if you have the intelligent investor's mindset. For the majority of people, the stock market is seductive, fascinating and deceptive in the short run. To the intelligent investor who views the stock market from a long-term perspective, it is boring and more rational.

It is my belief that investing in equities utilizing the SEM - Disciplined Investment System, has been and will continue to be a very worthwhile and sensible approach to preserving and growing wealth over time.

The value of investing $100,000 since inception (3 years and 5 months) net of all fees is:

I invite you to give us a call and discuss how we can work together to improve your investment results and experience. I hope you have pleasant weather this summer and as always, than you for your continued interest.

Sincerely,

Donald R. Jowdy
President