We are students of Benjamin Graham and operate a value-oriented investment management firm. This implies that we seek investments with an identifiable margin of safety, a true underlying value, and a cost lower than the asset’s fundamental worth. We use a metric of financial and performance screens to identify investment opportunities, and we follow a watch-list of competitive companies with long-lasting, measurable advantages. We only buy investments within an opportune price range, and we practice patience and diligence when deploying client assets.
Graham recognized that the market is fickle, acting with a personality of its own. Mr. Market, as he called it, shows euphoria one day, selling his shares at expensive prices. On bad days, however, the market panics. Though no fundamental change has taken place, it will sell the same shares at far lower cost.
We understand the disconnect between true value and cost. We aim to buy only at the most favorable times when others in the investment industry typically sell. In the same way, we typically sell when others are more likely to buy. We move strategically, focusing on possible loss before examining gain. Only once we have quantified the risk and determined it reasonable will we look to the reward. Even then, we calculate the benefits of long-term ownership and compound interest, analyzing probable outcomes and determining how the long-term odds may (or may not) stack in our favor.