Philosophy
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We are classic value investors in the tradition of Benjamin Graham and Warren Buffett. We rely exclusively on our own research. We identify companies that have demonstrated the ability to perform well regardless of industry conditions, cyclical trends, or volatility in the economy or market. We favor financially transparent and understandable companies run by proven management teams which sell at attractive valuations.
We run concentrated, conviction-weighted portfolios, which allow our very best ideas to drive performance. We define risk as a permanent loss of capital. Therefore, it is imperative to buy these businesses with a significant margin of safety to minimize this risk. After we make our investments, we patiently wait for them to reach fair value. By concentrating on not losing money, the probability of generating outperformance increases. Over time this investment strategy has generated superior risk-adjusted returns relative to our benchmarks and the broader market. |
"Investors must remember that they need not swing at every pitch to do well over time, indeed selectivity undoubtedly improves an investor’s results. For every business that cannot be valued, there are many others that can. Investors who confine themselves to what they know, as difficult as that may be, have a considerable advantage over everyone else. " |
