Our Investment Philosophy

We invest in “safe and value-according” companies.

• Safe means the companies have strong finances, competitive products and services, competent management and an understandable business

• Value-according means that we can buy the securities for no more than 60% of a company’s intrinsic business value.

We focus on what is, not what the market thinks.

• We analyze the quality and quantity of resources existing in a business at the time of analysis, rather than merely its market price or projected future revenues and earnings.

• We think that the current balance sheet is the best, albeit not the only, measure of a company’s value.

We take concentrated positions and hold for long periods.

• Our conviction gives us confidence in our best ideas and allows us to establish concentrated positions.

• We invest only in companies that we believe have the potential to create value for shareholders over the long term, withstanding cyclical downturns and evolving as leaders among their competition. Our long-term focus also minimizes portfolio turnover and enhances the tax efficiency of our investors.

Our strategy is very simple: associating with the best people, acquiring known securities, staying with them, and being constructive, not destructive.