We do not view investments as speculative trades in securities whose prices fluctuate daily. Instead, we approach every investment as a partial ownership interest in an underlying asset or business. Like any business owner, we focus on the economic value of the asset rather than short-term market movements.

Every asset has both a market price and an intrinsic value. While the market price is readily observable, intrinsic value reflects what the business is actually worth: its normalized earning power, and the cost a capable operator would face to replace what it owns today. We do not rely on long-dated cash-flow projections or terminal values, which we find unreliable more than a few years out, we buy cheaply enough that being right about a business's earnings power over the next few years is sufficient for the investment to work.

Our investment process is built on rigorous fundamental research aimed at identifying assets whose market prices materially underestimate their intrinsic value. By investing with a margin of safety and a long-term perspective, we seek to generate attractive risk-adjusted returns while minimizing the risk of permanent capital loss.