Our investment process is straight forward: we build portfolios of deeply undervalued businesses. We think of our positions as ownership interests in the underlying companies. We therefore invest with a long-term horizon.

We believe success in value investing requires two primary elements:

  1. Superior, in-depth research into the businesses we own. These companies are undergoing real issues, which is why their prices relative to normalized earnings estimates are low in the first place. Knowing what we are exposing ourselves and our clients to is a critical element of success. But it is not enough…
  2. A strict, repeatable investment process. This is so necessary, yet so difficult to implement. Why? Because emotions play a large role in investing. The daily mark-to-market that the stock market reports, however, is not useful to us. Our strict process is designed to ensure that human emotions do not override good research.