HOW WE DO IT:

• We do all our own research.
• Bottom-up stock picking. Financial analysis focused on five to ten year historical financials. Approach is centered on determining long-term sustainability of economic earnings (income statement, balance sheet and free cash flow).
• We invest in companies, not “stocks”. This allows us to be buy and hold investors. Before we invest in a company we must be able to predict with some degree of confidence an expectation of higher future revenues, profits and, where applicable, dividends. Our companies must pass rigorous valuation tests.
• When we buy bonds, we think of ourselves as lenders and conduct our analysis accordingly. Generally, bonds are held until maturity.
• What we don’t do is as important as what we do. Portfolio excludes “event driven” or volatile industries and companies.
• We believe in dividends.