Concentrated portfolios: 90% of the benefits of diversification are achieved through owning about 12 stocks¹the benefits of diversification decay quickly. We believe concentrated portfolios are the best way to build wealth.

Competitive position first: We look for strong businesses where economics are favorable and price and value have diverged²market quotes for stocks fluctuate much more than firms’ intrinsic values. Imagine if your home price varied 3-4x in a 12 month period (similar to many equities in 2020). Small caps, special situations, spin-offs, and turnarounds offer market mispricing opportunities.

Long-term outlook: We have long holding periods and look at companies with likely favorable business positions over the next 5-10 years. 

Know what to avoid: We avoid technical analysis, industries and firms with current and future expectations for lower returns on capital, and reliance on forecasting miracles.

Health Savings Account (HSA) investments: Industry agnostic but with an emphasis on hedging against healthcare costs. Modest savings and investment returns in working years can fund healthcare costs in retirement. Health and wealth are connected. 

Aligned interests: We invest a big part of our net worth alongside our clients. We do well when you do well.