Our Investment Philosophy
WE THINK ABOUT INVESTING AS THE PURCHASING OF COMPANIES RATHER THAN TRADING OF STOCKS
“Price is what you pay; value is what you get” – Benjamin Graham
What matters in the long run is a company’s business performance and not the investing public opinion in the short run. This means that you won’t need to worry about the markets ups and downs.
WE FOCUS ON INDIVIDUAL COMPANIES
By focusing on companies we do not attempt to guess the direction of the Economy. The essence of “Value Investing” is to know the company’s intrinsic worth because we believe the market will sooner or later recognize this. Markets are risky, good businesses are not.
WE ARE PATIENT, LONG-TERM INVESTORS
“Far more money has been lost by investors trying to anticipate corrections, than lost in corrections themselves” – Peter Lynch, Author, Legendary Investor
The market’s reaction to short term events can produce large swings in a stock price that are unrelated to the long-term prospects of the company. We look for such swings when they produce an attractive entry for a good business. Our approach takes out the guesswork of short-term price movements and focuses on what we believe is most important – building and compounding long-term wealth.
WE FIND OPPORTUNITY TO BUY A STAKE IN QUALITY BUSINESSES
When businesses fall below their value, we look for opportunities to buy them at a discounted price. Our investment decisions are based on extensive research geared toward finding the fundamental value of a business.