- All investment decisions should begin with an assessment of risk and, following disciplined analysis, should be expected to provide safety of principal over the long-term as well as an acceptable return for the risk assumed.
- Evaluating investment opportunities as business analysts allows us to better understand and identify high-quality, financially sound companies that can be purchased at a discount to their intrinsic value.
- Emphasizing objective, independent thinking, with an investment process focused on bottom-up, company-specific research rather than macro-forecasting, gives us a deeper knowledge of the companies in which we intend to invest, and allows us to effectively take advantage of short-term market dislocations.
- Great investment ideas are rare, and when investment opportunities with low risk and a high probability of success present themselves, we don’t shy away from allocating with conviction. That typically results in more concentrated portfolios that may differ in structure compared to the index and may provide less-than-commensurate risk.
- Portfolio construction plays a crucial role in mitigating risk, and by prudently allocating capital through a careful selection of compelling business investments, we seek to deliver superior risk-adjusted returns measured over a period of years, not quarters or months.