Our investment philosophy is to purchase stocks in much the same way that a knowledgeable buyer would evaluate a business for acquisition in its entirety. The business should be reasonably easy to understand, have favorable long-term prospects, be managed by competent individuals with integrity and, just as importantly, be available at a price which represents a discount from its intrinsic value.

The larger the discount, the less risk the investor assumes, and the greater the margin of safety. This approach is widely referred to as “value investing.” The purchase of an asset at a price not predicated upon an estimate of its value is simply speculation.