We employ a disciplined investment strategy seeking primarily equities of any market capitalization that we believe will produce high, risk-adjusted, forward rates of return (i.e. the long-term compound annualized return that we believe a given security will achieve when purchased at the current market price). However, we are opportunists and may occasionally invest in other asset classes.
In making our investment decisions, we use a “bottom-up” approach focused on individual companies, rather than focusing on macroeconomic factors. We search for above average businesses trading at below average prices. We think this approach combines the best features of so-called "growth" and "value" investing. In order to select investments, we use independent, in-house, fundamental research to analyze each company. With a 10 year+ time horizon in mind, we seek to purchase stocks which possess one or more of the following "three P’s":
Once we have determined the companies in which we would like to become business owners, we may use “option enhancement” as a means to generate additional income and to enter and exit positions.