Large-, Mid-, and Small-Cap
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 | We seek to buy excellent business franchises at an attractive valuation and then hold that
position for the long term — often three years or more
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| To us, excellent businesses are defined by growth (mid teens or greater), profitability (high
return on capital), and free cash flow (excess cash generated after making necessary
investments in the business)
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| The valuation the stock market places on a business tends to be much more volatile than the
underlying business franchise itself
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| We use a contrarian approach to buy these great businesses when anxiety depresses their
valuation. Then investors can benefit from both the return to a more normal valuation and the
long-term growth of the company
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| Our focus is on buying specific great businesses at an attractive valuation, not on matching
the industry diversification of some index
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| We consider only rapidly growing small companies that have already turned profitable. We do
not invest in concepts |
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International Stocks
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| With the same approach used for U.S. issues, we invest in the developed markets of Europe,
in Japan, and in the rest of Asia
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| We typically invest 20-30% of a global portfolio in non-U.S. markets
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| We do not limit our investments to ADR's. We frequently buy shares in the local market
before a stock has become popular enough to justify an ADR in the U.S. We are licensed to
buy local shares in Korea, Taiwan and India, which have restrictions on foreign investors
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| We make all the investment decisions ourselves and do not rely on sub-advisors
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| We have managed securities of Greater China – Mainland, Hong Kong, and Taiwan –
since 1996. |
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