Core Beliefs & Principles
Core Investment Beliefs
While nobody likes to sell at a loss, it is important to let the process outweigh one’s emotions. Sticking to the game plan in the heat of the moment gives us the ability to better manage volatility and re-evaluate during the calm.
Not investing with the consensus of the population can be difficult, but rewarding. You may have heard of the old adage “Buy when there is blood in the streets,” or “You pay a very high price for a cheery consensus.” Contrarian thinking is hard, but do it often.
We use a variety of tools and analyses to help guide our investment decisions. Technical analysis is one of those tools that can help us see trends. We like trends because they are powerful and can buffer minor mistakes.
While we believe that chasing a position is never a good idea, we do think that there are times where it makes sense to add more to a position. If the conditions are right and the story hasn’t changed, add to positions when terms are more favorable.
We like to re-evaluate our positions regularly. We never want to fall in love with our opinion.
When investing, we always want to consider your risk tolerance when choosing investments, keeping in mind that the valuation of these positions and the companies matter.
It’s harder to overpay for a company when buying quality. We prefer to buy great companies at great prices. However, without a catalyst, some companies can potentially stay cheap forever. Valuation, Quality and Momentum all play a part in our investment decision.