Our Philosophy

Strategy

  • We are business buyers and investors, not short-term traders

  • Our focus is to do in-depth research on strong, durable franchises

  • We strive to buy great companies at reasonable prices

  • We have a core belief that value is driven by time - not timing

  • The process seeks to identify growth businesses with key attributes

  • Adhering to these investment traits leads to positive stock selection

Characteristics

  • High barriers to entry and a “moat” around the franchise

  • Market share leaders with durable competitive advantages

  • Pricing power and flexibility to withstand market volatility

  • Recurring revenues and sustainable business models

  • Strong balance sheets with predictable free cash flow

  • Excellent management teams properly allocating capital

Short Term vs Long Term

  • In the short run, the equity market is a VOTING machine

  • Fickle opinions about prospects determine popularity or lack thereof

  • In the long run, the equity markets are a WEIGHING machine

  • One needs to assess underlying trends to determine intrinsic worth

  • A company’s valuation is determined by its long-term performance

  • Companies that execute well, will see their stock prices trend higher