The firm's research effort is based on the continuous appraisal of individual companies, various industries and the economy. We receive a broad spectrum of information and maintain working relationships with the leading Wall Street firms. Nevertheless, we believe that the best investment ideas come from independent research and judgment. We research well-known established companies as well as companies which are under-researched and under-owned by institutional investors. Internally, we conduct fundamental analysis and evaluate sector and industry data which is gathered by us. We attend various research conferences throughout the year as well as speak with numerous industry specialists and corporate contacts.

We are long-term investors and maintain an overall secular viewpoint based on structural developments and business cycle analysis. Investments are made in companies that possess depth of management, strong balance sheets and dominance in their industries. Additionally, the firm seeks to identify companies with the potential to become market leaders. We look for companies whose management has a strong past performance record in the industry in which these companies operate. We look unfavorably on companies which have large debt positions on their balance sheets. Finally, we look for companies which are leaders in their fields or have the potential to become a leader. We look for the best company in the best industry.

Investment Philosophy & Strategy

The foundation of our investment philosophy is a commitment to capital appreciation well in excess of economic and general market growth, while limiting exposure to fundamental risk. We believe that achieving long-term, non-market returns above the averages requires an orderly investment process which enables us to identify and purchase the securities of those companies which demonstrate superior financial performance. Disciplined management has kept us from following fads which tend to be short lived and detrimental to long-term performance. We believe that superior long-term performance is achieved by combining good stock selection with a disciplined approach to buying and selling securities. We are opposed to speculative investments in marginal companies and companies that are not socially conscious. Within our strategy is an insistence on quality for the companies we invest in. We seek out this quality through internally generated research and analysis. We believe that flexibility is a cornerstone of prudent money management. Therefore, we do not accumulate issues that have reached their potential given current economic environments. New ideas are implemented slowly. Additionally, should any security we own exhibit long-term fundamental deterioration, we move quickly to sell such a security.