Policy Draft

“Be fearful when others are greedy, and be greedy when others are fearful”


Core Principles

–          Discipline and Patience

–          Long-range Perspective

–          Focused Portfolio

–          Fundamental Analysis

–          Margin of Safety

–          Superior Returns


Portfolio Management

  1. Do not chase a stock.  Just take a strike or wait for a pull-back in the price.
  2. Be price-aware, but never be too concerned about short-term price movements.  Long-term focus provides the investor with a competitive advantage in the market.
  3. Keep dry powder on hand—buy in incremental stages instead of opening up a full position with your first purchase.
  4. Liquidity is key.  It enables you to play offense when markets are depressed.
  5. Be mindful of both transaction costs and tax implications when managing the portfolio.


  1. Focus on what’s important and knowable
  2. Don’t buy based on macro-analysis – value investors are bottom up investors.
  3. Primary focus is the intrinsic value of the enterprise.
  4. Asset quality is paramount
  5. Know the financial position of the business.



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