Investment Philosophy
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.
Goals/Tactics
- 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
