DISCIPLINE     +    PATIENCE    +   PERSPECTIVE      =    OUR INVESTING                                                                                                            PHILOSOPHY

DISCIPLINE

Our competitive advantage is derived from our disciplined application of our equity selection philosophy, which is based on adopting a business-owner mentality. This simple concept is the cornerstone of our investment philosophy, and we apply this methodology consistently regardless of short-term market events.

PATIENCE

We believe that possessing a long-term view is absolutely necessary to invest successfully, which we define as out-performing a benchmark over multi-year periods and growing long term-wealth. Our approach and structure give us the ability to base our decisions on our expected value of a business multiple years in the future, rather than whether a company's next quarter's earnings will beat expectations or whether the next tick of the stock price is up or down. We believe having a client base which shares this long-term focus is a great advantage in accomplishing our objective.

PERSPECTIVE

We strive to maximize return and we believe that the primary factor in achieving this goal is the safety of principal with a focus on minimizing the odds of a permanent loss of capital. Our goal is to generate substantial gains when our analysis proves correct, while minimizing downside risk if a particular investment thesis is flawed. Adhering to these principles often results in investment decisions that run counter to the general market psychology, and reduces the process of purchasing and selling to a discipline rather than an art.