Our guiding principle is that significant wealth is created by long-term investment in securities of companies with strong competitive positions, powerful cash-generating capacity, solid finances, competent and honest management, and attractive growth opportunities.
We do not subscribe to popular strategies based on short-term trends such as earnings momentum or earnings surprises, choosing instead to emphasize evaluation of the economic fundamentals of a business, focusing on a company’s long-term prospects.
The Businessperson’s Approach
- Buy outstanding businesses in growing industries
- Invest in companies whose business we understand
- Focus on predictable, excess cash-flow generation
- Do not follow the stock market herd
Our Strategy to Minimize Risk
- Diversify over a spectrum of good businesses
- Apply knowledge through fundamental analysis
- Attempt to buy out-of-favor stocks or stocks trading at a price less than what we believe the business is worth
Fixed Income (bonds)
Employing a total-return approach, bond portfolios are constructed to maximize after-tax returns.
Credit Quality: We emphasize investment-grade securities. We will only buy below investment-grade bonds if we know the company or issuer and believe its ratings do not accurately represent the risk of its bonds.
Maturity/Duration: Generally, we invest in maturities of 10 years or less, and will ladder maturities.
Sectors: Within a broad universe of government, municipal and corporate debt, we seek to optimally serve each client’s tax status and investment goals.
Adding Value While Reducing Risk
- Focus on investment-grade quality
- Calibrate maturities
- Evaluate sectors for optimal results
- Operate with low fees and low transaction costs