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Invest in Great Businesses Only at Reasonable Prices

What makes a ‘Great Business’?

Substantial Growth Potential over next 5-10 years, Bought at Fair Valuations

Profitable growth is a key to any businesses value, and enables the investor to compound their investment over time.
Businesses that smartly allocate profits and generate cash flow at a higher rate of return than the market offer outstanding long-term profit potential. Examples could be developing new products, opening new markets, acquiring small companies in the industry at attractive valuations, retiring more expensive debt, and returning capital to shareholders.
Strong market position from branding, patents, niche strength, scale, or high market share.
Profitable companies with a strong, defensible market position can maintain high returns for years or even decades.
Strong balance sheets to endure the business cycle's inevitable ups and downs.
Long-term holding periods lower tax liability through long-term capital gains.

Quality Value Style: Profitable, free cash flow generators, bought at attractive prices versus peers