Our investment strategy is rooted in common sense.
Stocks are ownership shares in businesses, not just pieces of paper that go up and down in price. We seek to own pieces of 10-20 businesses that are managed by executives who own large stakes in their business, and are thus motivated to think long term, while not worrying about what the market thinks about their stock in the short term.
We often buy shares in companies that are out of favor on Wall Street due to some sort of temporary problem that we believe is within management’s ability to fix, given enough time. This problem results in a cheap purchase price, and our patient approach to investing allows time for an incentivized management team to overcome the problem. Over time we expect our investments to benefit from both operational improvement, and a re-rating as the market’s view shifts from pessimism to optimism.