We incorporate proprietary systems and metrics in our decision making process that have been honed over 30 years of investment experience and have stood the test of time. On a highly systematic basis we:
- Conduct intensive fundamental balance sheet analysis. The quality of a company’s earnings must be reflected in long-term significant improvements to its balance sheet.
- Avoid overpriced securities, sectors and markets.
- Maintain an exceptional level of access to thought leaders in the industry and top management in the companies we follow.
- Conduct enlightened research to uncover a company’s strengths, weaknesses, threats and opportunities. Before we invest, we search and re-search for what is wrong with a company, its internal weaknesses and the many external threats to every company’s success.
- Identify primary macro-economic drivers shaping the business environment and industry sectors to determine expected results and impact on balance sheets and future revenues of companies we follow.
- Actively manage our holdings. We reappraise holdings daily. Each of our thrusts, ideas and themes are tested and re-tested by our investment advisory committee.
- Use sophisticated and extensive risk management and hedging strategies. We always seek the lowest risk profile relative to a given potential rate of return.