Our philosophy is inspired by the teachings of Mr Benjamin Graham and the long-term success of various US-based value investors, such as Warren Buffett, Ruane, Cunniff & Goldfarb and Tweedy Browne. Our objective is long-term capital growth whilst minimising the risk of permanent capital losses.

We aim to achieve this by purchasing investments at a significant discount to our estimate of their true or intrinsic value. Assessments of intrinsic value will depend on the nature of the business and may focus on asset values, existing earnings power, franchise growth, or a combination of these variables.

Our long-term approach to investing is characterised by low portfolio turnover. Portfolio turnover, however, will not be a limiting factor when we deem changes appropriate. We view risk as the possibility of permanent loss of capital rather than as a measure of short-term volatility in market prices.

We do not diversify in the conventional sense, believing that this risk is minimised by our intensive research process, by sticking to businesses that are simple to understand and ensuring that purchases are made at prices that provide us with a significant margin of safety. We therefore operate with concentrated portfolios, ensuring that we focus on our most attractive ideas.

When we have trouble finding investments to buy at attractive prices, we are prepared to build up cash reserves and wait patiently. Our disciplined approach has been developed through many years of analysing and investing in businesses. We are avid students of value investing and continue to seek improvements to our investment process.