We practice the investment strategy of selecting stocks that trade much less than their intrinsic values. A fundamental part of our investment strategy is to ensure that there is a margin of safety in our investments. This margin of safety allows our investments to be made with minimal downside risk and outperform the market over the long term as the stock prices will eventually reflect the fundamentals and values of the underlying stock. We make a long-term investment in a company with durable competitive advantages when the market price does not fully reflect its growth potential.

We use a private equity approach to public market investing. We invest in a company under the premise that the capital markets may not be available for a meaningful period of time and thus expect to earn an attractive absolute rate of return from the cash flows generated by the business and reinvested by management. Unlike most investment industry practitioners, we do not equate risk with volatility. Rather, we assess risk as the likelihood of permanent capital impairment. We will purchase shares of a company only after we have formulated a solid opinion of its intrinsic value and only if the price is below that value.