DISCIPLINES OF OUR INVESTMENT PHILOSOPHY
A well-defined investment strategy provides the discipline you need to weather market volatility, ignore short-term noise, and avoid emotional decision-making.
Time and again, we see markets swing excessively in reaction to current events, creating gaps between stock prices and the fundamental strength of businesses. These moments reveal opportunities: solid companies temporarily underpriced not because of operational issues, but because emotion has temporarily overwhelmed rational analysis. Identifying these situations is our specialty. We focus on value-driven investing, seeking out stocks the market has unfairly discounted.
Decades of experience have shaped our investment philosophy—insight that only comes from maintaining a long-term view through multiple market cycles.
VIRTUES OF A CONFIDENT INVESTOR
AVOID SELF- DESTRUCTIVE BEHAVIOR
Chasing the hot-performing investment category or making major tweaks to your long-term investment plan can sabotage one’s ability to build wealth. Instead, outline your long-term goals, develop a plan to work toward them and set the expectation that you will stick with that plan when faced with difficult periods for the market.
UNDERSTAND THAT CRISES ARE INEVITABLE
Crises are painful and difficult, but they are also an inevitable part of any long-term investor’s journey. Investors who bear this in mind may be less likely to react emotionally, more likely to stay on course and be better positioned to benefit from the long-term growth potential of stocks.
DON'T ATTEMPT TO TIME THE MARKET
Investors who understand that timing the market is a loser’s game will be less prone to reacting to short-term extremes in the market and more likely to adhere to their long-term investment plan.
BE PATIENT
Though periods of short-term volatility for stocks are to be expected, it is crucial to bear in mind that historically, stocks have often rewarded patient, long-term investors.
DON'T LET EMOTIONS GUIDE YOUR INVESTMENT DECISIONS
Great investors have recognized the value of making decisions that may not feel good at the time but that will bear fruit over the long term – such as investing in areas of the market that investors are avoiding and avoiding areas of the market that investors are embracing.
RECOGNIZE THAT SHORT TERM UNDERPERFORMANCE IS INEVITABLE
Almost all investment managers go through periods of underperformance. Build this expectation into your hiring decisions and also remember it when contemplating a manager change.
DISREGARD SHORT TERM FORECASTS AND PREDICTIONS
Don’t make decisions based on variables that are impossible to predict or control over the short term. Instead, focus your energy toward creating a diversified portfolio, developing a proper time horizon and realistic return expectation.
Markets frequently overreact to both good and bad news, causing stock prices to diverge from underlying business fundamentals. This creates opportunities: quality companies whose values have been unfairly suppressed by sentiment rather than actual performance. We specialize in identifying these situations where emotion has disconnected price from value. As disciplined value investors, we actively pursue stocks trading below their true worth.
Our approach has been shaped by decades of market experience—a perspective that can only develop through navigating multiple cycles over the long term.