It is our belief that the market is at times inefficient: occasionally, stock prices reflect investors' sentiment rather than a company's economics. Over time, inefficiencies are corrected and prices realign with intrinsic values. Value investors seek to buy companies whose shares appear underpriced relative to the underlying fundamentals. Often, such stocks are characterized by high dividend yields and low price-earning-ratios. The discount of the market price to the intrinsic value constitutes a margin of safety. We try to invest in outstanding companies at sensible prices rather than in average companies at bargain prices. Strict discipline, patience, and focus on long-term absolute returns are key tenets of our approach.

Most investors look favorably upon stocks rising in price and reject those falling. This conventional model causes them to overlook quality companies whose prices have fallen in overreaction to events that are transitory in nature. We emphasize fundamental economics over common opinions and try to think independently and long-term rather than letting herd behavior and short-term psychology cloud our judgement. Not always, but often, this makes us acting contrarian to the broad mass of market participants.

We employ a long-term investment strategy, buying carefully selected stocks. Once bought, we are not concerned about short-term price movements and technical indicators. We view stocks as fractional ownerships in businesses: once we have purchased interests in exceptional companies at reasonable prices, staying with our investments for a long time allows us to profit from the growth of their cash flows.

We have been an independent partnership since our incorporation in 1983. Such a structure provides stability, continuity and long-term focus, in perfect alignment with our investment philosophy.