Our experience and the laws of compounding show that steady seemingly unspectacular returns compounded over time provide better long term results than a series of spectacular short term booms followed by the inevitable busts.
We believe that disciplined, bottom-up, value investing is the most sensible approach to achieving capital protection and superior long-term results. As Warren Buffet so elegantly states, “the number one rule in investing is don’t lose money.” As value investors, we carefully research and evaluate the economics of individual companies and their management. We select companies which we feel are undervalued because of some short-term negative event, or because they are overlooked and improperly priced. We endeavour to build a portfolio of competitively strong businesses at prices that we believe will minimize risk and provide attractive potential.
In assessing individual companies and their management, we are guided by four key principles:
- We think like enterprising business people, not risk-taking speculators.
- We focus on the valuation of individual companies instead of macro economic events.
- We look for long-term investment growth and stability rather than short-term fads.
- We make decisions based on thorough assessments.
A critical step in our decision-making process is our independent research and evaluation of relevant information from different sources. The independence of our research helps ensure that our clients are not swept along by the short-term views of “The Street.” The partners have experience evaluating companies across all industries. We constantly monitor the asset mix, and the companies we invest in, and the changing business environment.