The Spectrum of Investment Merit
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In the old legend the wise men finally boiled down the history of mortal affairs into the single
phrase, ‘This too will pass.’ Confronted with a like challenge to distill the secret of sound
investing, we venture the motto: Margin of Safety…Investing is most intelligent when it is
most businesslike.
Benjamin Graham, The Intelligent Investor, 1949
Businesslike Investing
We manage client assets according to the philosophy of our firm’s namesake, Ben Graham.
Our approach begins with defining, quantifying, and testing factors that matter to us as
businessmen. Next, our findings are used to design our investment process, which
systematically evaluates the universe of public companies and ranks them along a
spectrum of investment merit (refer to graphic for a representation of this). Finally, client
portfolios are constructed from firms exhibiting the greatest margin of safety in each of the
dimensions we analyze. In this way, over time, the superior qualities of the underlying
businesses can be the driving force of our client’s returns.
We will soon unveil a website showcasing the research behind our Businesslike Investing
Model.
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