PHILOSOPHY

Our managers believe that common stocks represent an ownership interest in an underlying economic enterprise. Our research is focused on understanding two vital points:

• Quality:  We strive to concentrate our investments in quality companies that are highly profitable, have opportunities to grow and treat shareholders as partners.
• Valuation:  Our discipline only allows us to buy these quality companies at the right price.  The companies in our portfolio sell at a discount to what we believe they are intrinsically worth.