Investment Management Philosophy – Part II

2. Attempt to Focus on Exceptional Businesses

  • We believe a focus on quality businesses can improve our margin of safety and long-term compounding opportunities.
  • Owner Earnings ©ECAMWe evaluate the quality of a business by its:
    • Operating economics
    • Competitive advantage
    • Market opportunity
    • Pricing power
    • Capital intensity
    • Management skillset
  • Every day we seek to improve our knowledge of the universe of businesses that we define as great or that are blazing a trail toward greatness. These businesses must be understood in view of their long-term sustainability, not by short-term data points.

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