 |
|
 |
 |
Investment Process |
|
Investments are based on fundamental and detailed research and analysis, with particular emphasis on stocks with low absolute and relative P/E ratios:
 |
From a starting universe of the 1,250 largest U.S. equities, we methodically identify the least expensive based upon absolute P/E and P/E versus a company’s historic norms. |
|
The opportunity set of approximately 250 are subjected to our “value check” process which confirms valuation attractiveness. |
|
We then conduct thorough fundamental research on the resulting list of 80-100 companies, which typically includes visits and conversations with company management, competitors, customers, analysts, etc. |
|
We develop our own earnings, cash flow, and balance sheet models and cross check our own normalized estimates with company management and also with Wall Street analysts. |
|
We prepare detailed valuation models to develop price objectives. |
We sell a stock if the company fails to
meet our fundamental performance objectives or when it reaches
our price target.
P/E or price
to earnings ratio is the value of a company’s stock price relative to company
earnings. |
|
|
