Buy at a Discount
Our proprietary investment research seeks to determine the appraised value of a company. Investments are then made at a significant discount, ideally 20% to 40% below the company’s current intrinsic value
This approach allows us to buy companies with a sufficient margin of safety, as valuations are imprecise and the future is unpredictable.
Emphasis on Risk
Defining risk as the permanent loss of capital, we believe that the quality of investment decisions is far more important that the quantity of investment decisions.
Our process demands that we not trade stocks, but rather consider businesses we would like and purchase and hold for 5 to 10 years. We therefore mitigate risk via a thorough examination and understanding of each business we fractionally own.
Willingness to Hold Cash
Patience is necessary in the absence of obvious bargains, as entry price is a significant determinant of return.
As great ideas are often scarce, it can take a long time for the market to present truly compelling opportunities that coincide with our circle of competence. As a result, we are content to hold cash until our patience is rewarded.
"The stock market is filled with individuals who know the price of everything, but the value of nothing."
– Philip Fisher