For decades, we have owned a concentrated collection of high-quality businesses with long runways to compound intrinsic value. We wait to buy our favorite franchises at value prices. Portfolio turnover is low, which minimizes frictional costs.
We concentrate client capital into 20-25 businesses that a) generate economic returns far in excess of their costs of capital, b) are run by capable stewards with appropriate incentives, and c) trade at sensible prices.
We want to own quality franchises that harness the magic of compound interest by consistently growing their intrinsic value at attractive rates over long periods of time.
We hunt for high-quality growth companies trading at value prices. We demand substantial discounts to our estimate of intrinsic value, which protects client capital when we are wrong.
Our investment team collectively digs for clarity, or “scuttlebutt”, about a business’s prospects by speaking to a wide variety of people with relevant knowledge, including its competitors and customers. These conversations fortify our conviction to stick with promising ideas amidst inevitable market volatility.
We are business owners, not traders of common stocks. Even temperament, long-term orientation, and concentrated portfolios facilitate wealth creation across generations.