When “Mr. Market” Frets, Opportunity Knocks

Diligence when adding new capital is imperative to ensure that existing partners are not diluted out of sizable positions in businesses that we currently own.  We have been quite fortunate to acquire new positions and to add to most of our previously-held positions during periods of growth.  As the fund anticipates being a large net purchaser of stock in companies for the foreseeable future, we welcome low and declining prices to build positions – even in positions we currently hold.  We are only concerned with the intrinsic value of the businesses in which we invest.  Stagnant or declining prices in the face of solid business performance are simply an opportunity to own a greater proportion of the future profits of a business.  As we expect continued inflows of capital over the coming year, we hope that “Mr. Market” continues to offer us bargain prices on our current investments.  We would be delighted if “Mr. Market” would offer us more businesses at substantial discounts to their true value.