Our Prudent Approach to Risk Management

We Believe True Risk Is Not Volatility

We define true risk as the permanent loss of capital. This stems from paying too high a price for an asset or investing in businesses whose long term earning power is declining. Our risk management philosophy defends against these two critical mistakes.

Deep Knowledge Is Our Primary Defense Against Risk

The most effective way to mitigate risk is to understand what you own in exhaustive detail. Our deep, proprietary research acts as a powerful buffer against panic during market turmoil, allowing us to distinguish between temporary price declines and permanent impairments.

The Margin Of Safety Is Our Guiding Principle

We only invest when we can purchase securities at significant discounts to conservative estimates of intrinsic value. This gap provides crucial cushion against unforeseen challenges, ensuring long term success odds are in our favor.

We Invest In Quality Businesses That Act As A Ballast

High quality enterprises with durable advantages and strong balance sheets are inherently more resilient. During downturns, they often gain market share. By anchoring portfolios in these businesses, we create natural ballast against market storms.

Our Process Instills The Discipline To Avoid Emotional Errors

Over the long run, the greatest threat is often our own emotions. Our disciplined framework removes emotion from decision making, providing clear criteria and long term perspective to avoid costly emotional reactions.