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 its underlying business performance.