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 include:

  • Business enterprise value (market value plus net debt) significantly less than our estimate of intrinsic value.
  • A stock price less than a conservatively estimated present value of future per share cash flows.
  • A stock selling at price to earnings/cash flow valuations (adjusted for interest rates) below its historical levels.