We utilize a value investing approach popularized by the likes of Warren Buffett and Benjamin Graham. Our primary focus is buying and maintaining share ownership positions in measurably superior companies. We favor businesses with products or services of superior quality that are unique, simple, or proprietary, and firms run by talented, shareholder-oriented managers. These equities generally provide a margin of safety as well as significant upside if patience is properly exercised.
A typical portfolio is comprised of 15-20 stocks with the following characteristics: strong free cash flow, high returns on equity, strong balance sheets and superior earnings growth. We prefer rising profit margins, low debt, and a stable capital structure.