PHILOSOPHY
Evidence-Based Investing
Decades of academic research reveal a simple but powerful truth: active investing that relies on judgment is no match for investing based on systematic evidence. We follow time-tested principles and aim to build long-term wealth by patiently
Long-Term Perspective
Meaningful wealth is created through the power of compounding. Reacting to momentary headlines is never a recipe for wealth-building. We take a long-term perspective, where we tune out the short-term headlines and noise and focus on our objectives.
Value
Academic research reveals that value investing is one of the most enduring and profitable strategies on Wall Street. What is value investing? At its core it’s buying a business at a deep discount to its intrinsic value. We like to think of it as paying wholesale, not retail, and being patient until full value is achieved. The key is to recognize and quantify the difference between cheapness and value and to invest accordingly: a lousy business is cheap for a reason and often stays there, but a good business that is temporarily undervalued will usually revert to its full intrinsic value in time of academic research reveal a simple but powerful truth: active investing that relies on judgment is no match for investing based on systematic evidence. We follow time-tested principles and aim to build long-term wealth by patiently
Quality
Quality is one of those attributes we all admire but have difficulty quantifying. Is quality purely in the eye of the beholder? And when it comes to stocks, what exactly is a quality business? It turns out that enduring businesses with high perceived quality reveal their strength through their efficient use of capital and high profit margins. Shareholders are rewarded by this competitive advantage, as pricing power can be returned to investors in the form of healthy dividends or a rapidly appreciating stock price.
Momentum
Isaac Newton’s law of motion is commonly described as the tendency of an object in motion to stay in motion. While this description loosely paraphrases Newton’s actual theory, the concept applies to publicly-traded securities too: stocks that have recently outperformed tend to outperform awhile longer. This well-documented phenomenon reveals a fascinating insight about the behavioral tendencies of investors, and properly harnessed can be used to construct a portfolio with the potential for very satisfactory performance.