How We Think

These topics, which are largely excerpted from client letters dating back to our 2001 inception, provide insight into our philosophy and the key tenets that have consistently underpinned our investment approach, which has remained unchanged since our founding. These ideas and concepts are not all-encompassing but do provide a sense of “how we think” and our application of our investing philosophy.

Topic: Long Term

We are focused on estimating business results and compounding capital over long periods of time. An investment horizon focused on decades, rather than days, months, or quarters, is a competitive advantage.

Geometric Means, Kelly Criterion, etc.

Geometric Means, Kelly Criterion, etc.

We continuously have in-depth discussions surrounding the purchase or sale of a given security, but there exists another equally important problem for the investor — how to allocate capital between competing qualifying ideas.  It is not good enough to simply…

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“Real” Risk

“Real” Risk

We are often asked to discuss our investment philosophy as it relates to our expected long-term returns.  Many people making investment decisions today at very large, sophisticated institutions believe that an investment is less risky if it has a smooth…

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