Our investment philosophy is based upon the principles of fundamental value investing. The type of company in which we seek to invest is one whose intrinsic value is greater than the stated price of its shares. This provides investors with a “margin of safety” (a concept outlined by Benjamin Graham, Warren Buffett’s professor and mentor), which is the key to capital preservation.
While we are not active traders, we will not hesitate to sell all or part of an investment that we believe has become over-valued. Experienced investors know that holding shares in a company whose share price is irrationally high inevitably leads to losses. We carefully monitor our existing holdings to ensure that our investment thesis remains valid.
Diversification is a fundamental aspect of our risk management process. We maintain guidelines regarding the maximum size of any single holding and exposure to any single industry group.
* Fundamental value approach
* Focus on capital preservation
* Margin of safety
* Portfolio diversification