Philosophy
Buying good businesses for less than they are worth.
Our goal is to compound capital sensibly over decades, not quarters. We focus on intrinsic value, independent research, margin of safety, and the right temperament.
01
We invest to own parts of businesses.
We do not trade stocks like pieces of paper. We invest in businesses, not in tickers, and try to evaluate what the underlying business can earn over time.
02
A bird in the hand is worth two in the bush.
Investing is about evaluating whether we are trading the bird in the hand today for the birds in the bush: how many we may get, how long it may take, and what price gives us a margin of safety.
03
We avoid predictions, fads, and businesses we do not understand.
We do our own research, ignore market forecasts, and stay within our circle of competence. That means we may miss popular opportunities if we cannot understand the business deeply enough.
04
Candor matters.
Our writing should explain what we own and why, with both positives and negatives. The standard is to provide the business facts we would want to know if our positions were reversed.