Investment Philosophy

W
e focus on investing in simple, intuitive businesses that are aligned with our families’ background, strengths, and preferences. Our investment philosophy is shaped by values that we share with our families:

• Prioritize capital preservation and downside protection above capital appreciation
• Underwrite conservatively– We believe the majority of returns are actually made by preemptively avoiding poor investments
• Focus on building strategic and operational excellence, rather than on boosting returns through financial engineering (we conservatively use leverage in our transactions)
• Assume the long-term perspective of a business owner to allow us to build businesses the “right way,” consistent with our values
• Maintain the financial wherewithal to remain patient, eliminating financial pressures to pursue marginal deals during ‘frothy’ times or exit an investment prematurely when valuations are depressed