Long-term capital appreciation by investing in companies selling for less than our estimate of intrinsic value.
- To estimate intrinsic value, the business must be understandable, and we must be able to reasonably forecast its cash flows. We seek businesses with sustainable competitive
advantages, conservative balance sheets, and management with an ownership mentality.
- Investments are sold when the stock price reaches our estimate of intrinsic value,
our estimate of intrinsic value is revised such that there is no longer a discount to
intrinsic value, a holding reaches our stated maximum position size, or to raise proceeds
for a more attractive opportunity.