Our investment philosophy is to purchase stocks in the same way that a knowledgeable buyer would evaluate a business for acquisition in its entirety. The business should be simple to understand, utilize conservative accounting methods, and should be led by individuals whose interests are aligned with shareholders, are ethical and competent leaders, and are able to articulate a sound growth strategy and value proposition. The philosophy is to buy stocks that meet the following criteria: •“Normalized” Earnings Yield must exceed the yield offered on
an investment grade corporate bond
•Earnings and revenue growing in excess of inflation
•Management must have demonstrated record of integrity,
conservative/transparent accounting, and shareholder orientation
•Strong (greater than 12%) returns on invested capital that
exceed the company’s total cost of capital •Company must trade at a 20% discount to both our calculated
intrinsic value and private market value estimates |
|
|
|
|
Homepage >
Investment Philosophy |