The Selective Process

We believe excellent investment results are achieved through long term ownership of world class businesses, which we call Selective Companies. The way we determine the quality of these companies is through a method we call the Selective Process.

Once a business is identified as a Selective Company, we patiently wait for an opportunity to purchase the company at a discount to its value.

An investment in knowledge pays the best interest.
— Benjamin Franklin

The Six Pillars

of a Selective Company

We look for these six distinct characteristics that a company must possess in order to be considered a Selective Company. Watch the videos below to find out more about each of the six characteristics.

 
 

We wait patiently

Once a business meets the Selective Criteria, it is placed on our watchlist. 

The price of these Selective Companies are monitored on a daily basis using a proprietary valuation technique that improves upon the traditional discounted cash flow analysis.  As price changes in real time, the relative attractiveness of each business is updated.  The objective is to establish positions in Selective Companies at a discount to intrinsic value.

Photo by SeanPavonePhoto/iStock / Getty Images
Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.
— Warren Buffett, CEO, Berkshire Hathaway

What it means for clients

Connected to your investments

As a Selective client, you are invited to quarterly updates on each business that you are invested in. We provide deep insights into what you own and why you own it.

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Accountability & Transparency

We provide 5 year projections on how we think each business will perform. Each key metric will be periodically updated to show actuals vs. projections.

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Being cautious shouldn't mean expecting less.

By investing in Selective Companies at attractive prices We Believe:

  • In difficult economic times, Selective Companies provide a margin of safety

  • Investors gain transparency into the underlying operating performance of each business

  • Long-term investment results benefit from the strength of these Selective Companies

  • Selective clients gain confidence in all market conditions

  • Businesses can be held for long periods of time, improving tax efficient returns

  • Investors know what they own and why they own it

 
Photo by Ridofranz/iStock / Getty Images

Connect with Us

Whether its a quick 15-minute meeting, or phone call to discuss your next steps. Conveniently schedule your appointment below.