At Diamond Hill, we have consistently applied an intrinsic value equity investment philosophy since our founding. We seek to buy ownership stakes in businesses trading for less than what they are worth and wait for that value to be realized over time.
Under our intrinsic value investment philosophy, we:
Treat every investment as a partial ownership interest in that company
Seek to always invest with a margin of safety
Possess a long-term investment temperament
Recognize that market price and intrinsic value tend to converge over a reasonable period of time
We believe the price that you pay for a business is critical. Great businesses do not in and of themselves make great investments — as Warren Buffett has pointed out, “Price is what you pay; value is what you get.” We only initiate holdings — long or short — when they are available at a sufficient discount to our assessment of the intrinsic value
Having a long-term investment orientation requires a deep understanding of sustainability — in business models, management teams and operating practices.
Our fundamental equity research process includes evaluation of all material risks and opportunities that could impact the value of an investment over the long term, including issues related to sustainability and ESG risk factors.