The principal objective of our relationships is the intergenerational growth of capital. In accomplishing this, our first focus is on preserving the capital we are entrusted with as we are keenly aware of the reverse mathematics of making up losses. As no one has a privileged view into the future, we attempt to make investments in companies with the ability to earn good returns over a wide spectrum of future market and economic scenarios. We strive to safely grow clients’ capital over years and decades, not next week or next quarter.

Our approach to investing in value is to search for “mispricings,” shares whose long-term value is underappreciated in the public marketplace as reflected by its price. Mispricings often occur due to disparate time horizons or a focus on short term results. It is simply not sufficient to buy a good business at any price as we understand that trees, regardless of how well tended, do not grow to the sky. We endeavor to buy good businesses well, which means at a price that is less than the business is worth.

In establishing a new client relationship, we try to gain an understanding of the client’s expectations, tolerance for volatility, and need for current income generated by the investment portfolio. Fixed income securities, while generally offering a lower return, offer a stable and predictable return and may be an integral part of the overall investment portfolio.