Purchase Discipline

A key component of the long-term value we seek to add is our steadfast purchase price discipline. Buying stocks below conservatively estimated intrinsic values, we believe, produces superior long-term results while reducing risk.

Valuation Parameters:

  • Business enterprise value (market value plus net debt) less than 75% of our estimate of intrinsic value.
  • A stock price less than a conservatively estimated present value of future per share cash flows.
  • Stock market valuations (adjusted for interest rates) below historical averages.