Research Process

Well Rounded Analysis

WELL-ROUNDED ANALYSIS: Too many advisors claim there is One Key, or One Secret, that allows them to buy stocks just as they are ready to go up. Simplicity is appealing, but we’ve found that magic and investment don’t mix. We think the Key to identifying investment opportunities lies in robust, well-rounded analysis, balanced across a variety of metrics. Our research process reflects this, as we pursue rigorous analysis, both subjective and objective, qualitative and quantitative.


CHECKLIST: Our criterion for a potential investment includes a discounted price, competent management, and a competitive advantage. Our checklist includes sections on valuation, the balance sheet, management, competitive dynamics and qualitative factors, growth, ownership, possible catalysts, risks and explicit questions on our own behavioral biases. Our research process involves analysis of each business’ drivers of earnings, industry trends and how they relate to the bottom-line, and the vulnerability of each company to disruptive innovation. We use our proprietary checklist as a tool to impose discipline on a process so often interrupted by human bias.

Solid Ownership

SOLID OWNERSHIP: We look for companies that treat shareholders, employees and customers as stakeholders. We look for companies with an ownership culture, companies that take pride in who they are and what they do, companies that nurture relationships with each stakeholder, perform better over time, and make long-term ownership possible. We look for companies that will give our clients a sense of pride in ownership. We don’t just buy lines on charts or baskets of securities, we buy ownership interests in real, solid businesses that have a history of profitability and a penchant for doing things right for their shareholders.