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 long-term returns are created by concentrated portfolios, as excellent ideas are few and far between. We seek to improve our odds by tuning out the noise and focusing on the signal - making fewer, better decisions over a longer horizon, where competition has dwindled. We strive to bet big when we have the odds, work hard to maximize gains, and harder to minimize mistakes.
We believe superior performance is generated largely by patience, discipline, and the conviction to act with boldness when an opportunity presents itself. Our job is to surround ourselves with good ideas and ensure we slow down enough to recognize them when they show up. Time arbitrage is the greatest advantage in a world where price is set by investors focused on the next tick.
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.
