Investment Philsophy

We are business owners, not speculators

At our core, we view buying a stock as buying a fraction of the underlying business, where we are the ultimate beneficiaries of the business’s underlying cash flows. We consider ourselves business analysts rather than stock pickers, where we emphasize understanding the earnings power of a business, rather than speculate on who is the incremental buyer or seller of a stock.

We are focused on absolute returns, volatility is our friend

To paraphrase Warren Buffett and Ben Graham, we see the market as a voting machine in the short-term, but a weighing machine in the long-term. As such, we do not shy away from volatility. On the contrary, we view volatility as our ally as it provides us with ample opportunity to buy great businesses below intrinsic value and to sell above intrinsic value.

Common sense is not common, keep it simple

As the investment industry has become overly complicated with high-frequency news, noise, and data, investors typically find themselves thinking less while focusing more on the near-term data, resulting in a false sense of precisions. This often results in sub-par returns.

Avoid permanent impairments of capital, invest with margin of safety

Through deep diligence with a business owner’s mindset and the flexibility to only invest when we meet the required margin of safety, we minimize the risk of having permanent impairments within our portfolio.

We always ask ourselves “where can we be wrong?” and “what are we missing?” so that we can understand both sides of the coin and remain unbiased in our opinions while focusing on the facts. This way, when the market overreacts, we have the conviction and prudence to make the right decision based on facts, rather than emotions