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HOW WE INVEST
There are many different and successful investment strategies. Our way is not the only way. However, of one thing we are certain: changing one’s strategy to fit the prevailing market trends will, in most cases, lead to poor investment results.
The purpose of financial markets is to provide for the efficient allocation of capital to businesses that create wealth and opportunity. Our goal is to align the interests of our clients with those outcomes, while minimizing volatility. Our time-tested investment principles provide a commonsense alternative to the speculative trading cultures at many investment firms.
Investment Principles
Invest for the purpose of achieving superior total return over the long run.
Emphasize companies with superior business franchises and enduring competitive advantages -- producing consistent and superior growth of profits and dividends along with high and sustainable returns on capital.
Invest in companies with proven managers who treat shareholders like partners.
Exercise patience, discipline, independent judgment and humility.
Minimizing Risk
Invest in less than 25 companies that we study carefully and follow closely.
Hold a portfolio of companies which, as a group, produce higher profits and dividends year-after-year.
Create a margin of safety by purchasing common stocks at prices well below our estimate of the intrinsic value of the company.
Emphasize investments in lower risk businesses – companies that enjoy constant and recurring demand for their products and services.
“Do not believe that you alone can be right. The man who thinks that, the man who maintains that only he has the power to reason correctly, the gift to speak, the soul – A man like that, when you know him, turns out empty.”