We invest in a limited number of high quality companies that have a record of increasing sales and earnings, and hold them as long as their fundamentals remain intact. Capable management and sound finances are critical considerations. Investments are made when it is believed a company's long-term outlook is sound and the shares are fairly priced.
The primary focus is on business analysis, and no attempt is made to forecast market trends. Quality companies with successful track records that have fallen from investor favor may be of interest if we determine the cause of investor disaffection is temporary, and that share prices fail to reflect our assessment of intrinsic value. However, companies with poor records, or those that suffer reversals deemed likely to be permanent are avoided regardless of how "cheap" their shares may appear.