Equity Philosophy

We direct our universe to businesses we understand and have determined to have far better than average characteristics.

Underweight High Risk Businesses: 

• Computer hardware business - products almost immediately become obsolete

• Airlines - an industry without control of its own destiny

• Biotech - “unanalyzable”

• Fads - sales provide negligible sustained enterprise value

• Start-ups

Search for established operations which possess these desired attributes: 

• Provide high returns on invested assets >= 20% pretax

• Provide product or service with minimal chance of obsolescence

• Possess franchise-like characteristics with significant barriers to entry

• Substantial operations - Market leadership

• Sound management with an equity interest