Our investment objective is to find stocks that 1) are trading at discounts to their intrinsic values and 2) have catalysts to provide upside to their intrinsic values.
- Our main objective is to own quality companies that outperform over time. Once we identify these companies, we look to own them at reasonable prices (GARP strategy - growth at a reasonable price). We believe stocks trade below their intrinsic values for a variety of reasons including trading in sympathy with the industry, another stock or the market. By evaluating companies on the front end through research and hard work, we are able to buy these companies when they reach our valuation standards and as discount opportunities arise.
- In addition to owning companies that we believe have strong fundamentals, solid growth rates and attractive franchises, we seek companies with catalysts that will help other investors recognize the company's potential and elevate the stock price to the intrinsic value we assign the stock. Once we have identified the catalyst, we test our catalyst thesis to determine the probability of the catalyst occurring. We then research this catalyst to determine if it led to stock appreciation in the past. By taking the time to test our catalyst, we believe it adds consistency to our investment process and reduces the likelihood of mistakes.
Investors are subject to investment risks, including, without limitation, equity securities risk, investment adviser risk, credit and interest rate risk.