Investment Philosophy

Fundamentally, we pride ourselves on being long-term, value investors. We view publicly-traded shares not as pieces of paper or quotes on a screen, but as partial ownership of businesses. Our efforts are focused on acquiring equity stakes in companies at significant discounts to rationally determined assessments of intrinsic worth.

Some other hallmarks of our approach can be summarized as follows:

  • Long-Term, Patient Approach
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    • We consider a three-to-five year time horizon when contemplating an investment.
       
  • Concentrated Portfolio
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    • We focus on our top ideas and believe in committing meaningful amounts of our capital to the best ideas we can find.  It is our expectation that at any one point in time we might own 10 to 12 core holdings.
       
  • Small / Micro-Capitalization Focus
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    • We focus on smaller companies.  While we are free to invest across the market cap spectrum, a significant amount of our efforts are directed at companies with market capitalizations under $1 billion USD.  These smaller companies tend to be less efficiently priced.
       
  • International Exposure
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    • We do not limit our universe of investible companies to those in the United States. While we are free to buy in any country, our international efforts are directed primarily at Canada, Australia and the United Kingdom.
       
  • Appreciation for Cash
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    • We do not believe in the necessity of being fully invested, and judge that the value of cash can be underestimated. As such, we often hold significant amounts of cash.
       
  • Research-Oriented Methodology
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    • We conduct intensive due diligence.  Our goal is to understand a company as well as could be expected by a passive, minority shareholder.