Investment Philosophy

by Marilou Moursund on July 24, 2009

Investment Strategy
We look for high quality companies that can grow their earnings, provide a positive return on capital, and generate free cash flow over a longer span of time than the next quarter or year.  We look for three types of growth:  emerging, consistent, or reaccelerating.  When we evaluate a company, we look at its opportunity, strategy, execution, valuation, and the risks to our thesis.


  • Invest for the long term
  • Harness the power of compounding
  • Focus on after-tax returns for taxable investors
  • Willing to capitalize on near-term opportunities
  • Target themes that will grow into a meaningful piece of the economy
  • Identify and select superior businesses with management teams that deliver results
  • Define risk as the erosion of fundamental earnings power as well as relative volatility
  • Concentrated portfolio of 20 to 30 stocks which provides adequate diversification without diluting our best ideas
  • All cap U.S. equities