Our Investment Philosophy
We believe that over the long term, a company’s market value will reflect the fundamental value of the underlying business. This implies that above-average stock price performance should be the result of above-average growth in intrinsic value per share. While we believe that entry price is a critical factor in investment returns, our experience suggests that the primary drivers of long-term business value are largely qualitative in nature.
We focus our research on qualitative factors related to value creation at the business level, including competitive positioning; management talent and character; and growth opportunity. Our goal is to distill our investment universe down to what we believe are the world’s most extraordinary businesses and concentrate client capital in the subset of stocks that, in our estimation, have the highest total return potential. Ultimately, our research effort is intended to identify future “extreme winners” – the next generation of companies like Amazon, Microsoft, and Starbucks – before their potential is realized in the marketplace.