Investment Philosophy

• Focus on high-quality companies with durable competitive advantages and sustainable growth.
• Select management teams that are well aligned with shareholder interests.
• Act infrequently—only when a truly compelling investment opportunity arises and is available at a valuation that offers a solid margin of safety.
• Operate with a long-term mindset and patience.
• Approach all investments with an ownership mentality, with the intention of holding many positions for a decade or longer.
• Concentrate the portfolio solely on the highest-conviction ideas, developed through deep understanding and rigorous research.

Key Principles

• Be patient and highly selective—say no to almost everything.
• Take advantage of the market’s bipolar mood swings.
• Buy stocks at a significant discount to their underlying intrinsic value.
• Stay within our circle of competence; avoid anything too difficult to understand.
• Make a small number of mispriced bets with limited downside and substantial upside.

Value Quotes

Simple

Take a simple idea and take it seriously.

Charlie Munger

One of the greatest ways to avoid trouble is to keep it simple.

Charlie Munger

Happiness

The happiness of those who crave popularity depends on others; the happiness of those who pursue pleasure fluctuates with moods they cannot control; however, the happiness of the wise arises from their own free actions.

Marcus Aurelius

Experience

I like to say, experience is what you got when you didn’t get what you wanted.

Howard Marks

Learning

I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all yourself. Nobody’s that smart.

Charlie Munger

Habits

I think that people underestimate -until they get older- they underestimate just how important habits are, and how difficult they are to change when you’re forty-five or fifty, and how important it is that you form the right ones when you’re young.

Warren Buffett