We provide institutional-caliber money management services that are based upon a solid, proven research approach. There are three primary characteristics we seek when analyzing a company: great business, great people, and great price.
- Simple and understandable
- Consistent operating history
- Favorable prospects for long-term demand of its product
- Competitive advantages
- Low debt
Great businesses are companies that have strong competitive advantages within their industries. These companies generally have operating histories of more than 10 years, demonstrate strength in all economic environments, and are well-positioned for growth. They also have strong brands and operate in stable industries.
- A management team of capable operators
- Track record of success
- Long-term orientation
- Intelligent capital allocators
- Large ownership stake
When we say excellent management, we mean that the team at the helm has a track record of success. Additionally, we look for managers who display integrity, intelligence, and a strong work ethic. In many cases these executives have a significant amount of their own net worth invested in the company. This alignment of interests helps to keep management focused on decisions that make sense for the company’s entire shareholder base.
- Undervalued – as compared to assets and identifiable earnings
- Selling at 60% or less of intrinsic value
By targeting undervalued stocks in inherently great companies, we aim to bring our clients real value and superior returns while minimizing risk. While great businesses usually demand a high purchase price, expert analysis and vigilant monitoring allows us to determine when the stock is “on sale” and to purchase when an attractive investment opportunity presents itself.