Maintaining conviction through volatility
Financial markets are driven by fear and greed, creating cycles of boom and bust. We focus on controlling reactions to these emotional tides. Our disciplined framework acts as vital anchor, providing rational, repeatable process ensuring decisions are based on fundamentals, not prevailing mood.
Stock price is what the market pays today - highly volatile and influenced by emotions. Intrinsic value is our estimate of true, long term worth based on future cash flows. Our discipline focuses on value's anchor, allowing prudent skepticism when others are greedy, courageous opportunism when others are fearful.
For disciplined long term investors, volatility periodically offers exceptional businesses at discounted prices. When markets fall, we see opportunity to deploy capital into great companies at attractive prices. This counter-cyclical approach is fundamental to buying low and selling high.
Historical evidence is overwhelming: market timing is a fool's errand. We believe "time in the market" is most important. We remain consistently invested in high quality businesses, allowing compounding to work over the long run.
We cannot control macroeconomic events or market sentiment. We focus on controllable variables: quality of businesses we choose, prices we pay, ongoing diligence we conduct, and transparency we provide. Mastering these builds robust process for wide range of scenarios.