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.