Our Philosophy
We apply a collection of strong values to all the work we do, helping ensure your money is protected, and risk is mitigated when possible. Here are some of the pillars of our company that epitomize the way we work.
- Value Investing
- Perceived Value Compared to True Value
- Capital Preservation
As value investors, on an ongoing basis we’re comparing the true values of investments with their perceived values in search of opportunities, and we pay close attention to capital preservation.
The market price of an investment is the same as its perceived value because it’s the price people are willing to pay right now to buy the investment. When the market price of an investment is below its true value, we believe the investment is relatively safe to buy because, over time, the market price should rise to equal to the true value.
Capital preservation comes into play when the market price of an investment with a perceived value that’s lower than the true value drops. In other words, the price moves away from the true value. When this happens, many investors are tempted to sell out. However, we resist this temptation as long as the true value continues to be higher than the market price because, over time, the market price should rise to become equal to the true value.
