Stocks
We look for companies with strong competitive positions. Companies
with transparent accounting policies and management that put the interest
of their shareholders first are preferred. By buying and holding investments
trading below our fair value estimates, our goal is to reduce investment
risks while increasing long-term returns. By selling investments trading
above our fair market or intrinsic value estimates, our goal is to
reduce investment risks while increasing long-term returns.
Our fair value or intrinsic value estimates are based on a number
of assumptions as they relate to these and other investment questions:
- What is the company’s competitive advantage in its industry
and is this competitive advantage sustainable over the long-term?
- What demographic trends are favorable or unfavorable for this
company?
- What international trends are favorable or unfavorable for this
company?
- What past actions has management taken deemed favorable to shareholders?
- What policies are currently in-place deemed favorable to shareholders?
- What are the company’s growth prospects over the next
five to ten years?
- What risks factors are unique to this company and/or its industry?
- What impact would higher interest rates and increased inflation
have on this company?
- Is the firm’s current market price higher or lower than
our fair-value estimate?
Seeking answers to the preceding questions represent just the
beginning of our comprehensive and independent investment research.
Independent, unbiased investment research can be used to make more
profitable investment decisions. |
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