Our Principles

If an investor is not continously learning, his knowledge will become obsolete. Principals remain constant, but technology and other disruptions can quickly change the validity of any investment analysis.

Patience is the glue that holds everything together in investing, especially for value investors. The willingness to commit to a situation with no clear prospect of a big payoff in the near term – so long as the conviction is based on sound logic and/or a favorable price – can be a competitive advantage in a world where most investors are short term in nature.

Successful investing requires that one is committed to doing the right thing at the right time. That includes not hesitating to sell when prices rise above intrinsic value or when it is realised that a mistake has been made. It also means having sound risk controls that force accounts to be rebalanced when specified limits have been breached.

True value investors have a deep conviction that price movements in themselves are not at all indicative of what a stock is worth. Each publicly traded stock represents a real company, the value of which is dependent on its earnings power and asset value. By buying stocks at a price below what is justified by the underlying company’s earnings power, one can hypothetically protect from true downside while creating potential for profit.