Our equity investment process begins with a search for quality companies. The next step is to analyze the company's operations, strategy, competition, management, finances and current and potential cash-generation capabilities. The intrinsic value of the company is determined which is compared with the market price of the company. The investment is made only if the shares are a compelling value. This can be termed "value investing" in that investments are made with the intrinsic value of the company in mind; but is different from what value investing is often thought to mean, specifically investing only in boring, slow-growth companies. We can buy even wild growth companies, but only at a good price. In our opinion, any investment made without knowledge of intrinsic value is flying blind and just hoping for some other careless investor to bail you out at a higher price.

Often, irrational market values are created, both too high and too low, by the high levels of liquidity in today's financial markets, very low transaction costs, the perception that electronic news and analysis is all one requires to make informed investments, and emotions. We are able to avoid much of the risk and volatility inherent in the stock market by maintaining our primary focus on companies and a rational estimate of their intrinsic values. At the same time, knowledge of intrinsic values coupled with the emotions and overshooting tendencies of the markets, allow investors like us to buy our investments at too-low prices, and sell when they're too high.

We operate with absolute integrity in all endeavors, and avoid all potential conflicts of interest. The firm's only source of income is our investment management fee, a percentage of assets under management. Consequently, we share the goal of wanting to increase the value of clients' assets.