We look for value everywhere.


Low Valuation Works

Study after study has shown that stocks with low valuation ratios — low price/earnings (P/E), low price/cash flow, low price/book — outperform stocks in general by a wide margin. Many times high P/E's reflect too much optimism about a company's future while low P/E's reflect too much pessimism.

Less Risk, More Reward

We believe that less risk means more reward. We believe risk is paying more than the value of the asset. We believe reward is paying less than the value of the asset. However, because value may not be easy to discern and may not be precisely quantifiable, stocks must be purchased with a large margin of safety. Our goal is to find stocks that we believe have (1) a much greater chance of rising than falling and (2) much more upside price potential than downside risk.

Investment Flexibility

Opportunities are not confined within style boxes and neither are we. We search for compelling investments in companies large and small, foreign and domestic. Our MAP criteria apply across the investment spectrum. This allows us to put our dollars to work wherever we find opportunity.


Portfolios generally consist of 25–35 diversified stocks. Logically, our 25th best stock idea is more likely to provide a more compelling risk/reward proposition than our 100th best idea. We believe owning too many stocks results in "di-worsification," not diversification.

Long-Term Perspective

There are times when a stock price does not reflect a company's underlying value. Once we have identified such an opportunity and purchased a stock, we are prepared to wait for an eventual convergence between price and value. Our average holding period for an issue is about three to four years.