Leonardo da Vinci
Frank Lloyd Wright
Value lies at the heart of our investment process, because the price you pay is the most critical factor in limiting risk. We construct portfolios on a foundation of rigorous fundamental analysis, block by block, one idea at a time. Purchases are limited to those ideas trading at a large enough discount to fair value, since an investor’s margin of safety is always and only dependent upon the price paid.
We believe exceptional returns are created by concentration, as excellent ideas are few and far between. So, we build high-conviction portfolios, balancing rigorous research with common sense. Because we look different than the market, our returns do, too. Because we focus on fewer, better decisions, we work to minimize mistakes and maximize gains.
Patience is a virtue. It’s also the greatest advantage we have in a world where price is set by investors focused on the next tick. Superior performance is generated largely by patience, discipline and the conviction to act with boldness when an opportunity presents itself. So, our job as investors is to surround ourselves with good ideas and ensure that we slow down enough to recognize them when they show up.
Creativity requires novelty - opening your mind to uncertainty, the nonlinear, and the improbable. Being genuinely creative means being comfortable not knowing where you are going, while remaining confident you are on the right path.