Philosophy

Our Investment Philosophy is as follows:

  • A share of stock is a fractional ownership interest in a business. Productive assets, such as businesses and real estate, have historically been the best way to increase purchasing power over time.
  • Identifying a significant difference between the market price of a security and its intrinsic value defines an investment opportunity. We seek a margin of safety, purchasing securities at prices substantially less than the value of the underlying businesses they represent.
  • We define risk as the possibility of permanent loss of capital, not by the degree by which a security’s price fluctuates. Volatility is not risk but a friend to the value investor.
  • Growth is a form of value when not priced properly.
  • Over the long-term, a Company’s share price will reflect the underlying business performance.