INVESTMENT MANAGEMENT

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Our goal in managing your investments is to obtain long-term appreciation of capital by buying financially strong companies at a discount to their intrinsic value based on our estimate of their future earning ability. We look for companies that have sustainable competitive advantages that should allow them to earn greater than average returns on invested capital for years to come. In addition, companies we buy must operate in industries with favorable long-term economics and must have trustworthy management that is dedicated to and capable of enhancing shareholder value.

We aim to increase the value of your portfolio by focusing on a small number of companies that meet the above criteria, and holding them for long periods of time. We aim to keep turnover low, only selling a company if the underlying fundamentals of its business or industry have eroded or appear likely to erode, or if we believe the price we can sell it for is far above our intrinsic value estimate. This low turnover will increase tax efficiency and reduce costs for our clients. We believe this focused strategy improves our ability to beat the long-term returns generated by the average investor.
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