During the construction of a Roman arch, as the supporting scaffolding was removed, the engineer was required to stand beneath the arch. Such a system ensured the engineer designed and built the structure with a substantial margin of safety.

At Cook & Bynum, we will treat your investment in the Fund as if it were our own and consider it imperative to have our interests aligned with yours. To this end, we will invest substantially all of our liquid net worth alongside our investors. Roughly half of this investment will be in The Cook & Bynum Fund. The other half will be invested in the other investment products we manage. Do you demand this margin of safety from your other money managers?

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Investment Philosophy

The Cook & Bynum Fund seeks long term growth of capital. We strive to implement a pure, concentrated value investing philosophy based on the teachings of Benjamin Graham, John Burr Williams, Warren Buffett, and Charles Munger. We believe this strategy is the best and safest way to achieve superior long-term returns.

In order to minimize the risk of permanent capital loss, we use the following investment methodology:

  • We only invest in companies whose core economics and future prospects we think we understand. We know our ability to recognize our limitations will be as important as our ability to execute competencies.
  • We seek to invest in companies that have durable competitive advantages, which allow them to earn a high return on equity for an extended period of time. We purchase businesses whose futures we feel confident predicting. If a company’s business does not have a significant competitive advantage, its results will be difficult to forecast.
  • We will invest in companies whose management we believe is capable and trustworthy. The risk of permanent capital loss can be lowered significantly if we only invest in businesses where management views us as a partner.
  • Once we feel comfortable with our valuation, we buy a company as long as it is trading at a large discount to our appraisal. This “margin of safety” serves to both prevent permanent capital loss when we make mistakes and may also provide outsized returns when we are correct. However, there is no assurance that any investment will achieve a positive result.

Investors should consider the investment objectives, risks, charges and expenses of The Cook & Bynum Fund carefully before investing. This and other important information about The Cook & Bynum Fund can be found in its prospectus.

The Cook & Bynum Fund invests in securities using a value approach to investing. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic values.

The Cook & Bynum Fund is a non-diversified mutual fund, which means that the Fund invests in a smaller number of securities when compared to more diversified funds. This strategy exposes the Fund and its shareholders to greater risk of loss from adverse developments affecting portfolio companies.

The Cook & Bynum Fund, a series of The Cook & Bynum Funds Trust, commenced operations on July 1, 2009.

Not FDIC Insured · No Bank Guarantee · May Lose Value