Long-term compounding of capital is our ultimate goal, achieved by following the cardinal principles of preservation first, growth second. Making money begins with not losing it; accordingly, we seize the opportunity to invest only when we find companies or other investments that are underpriced by the markets. We measure growth of capital in absolute terms, not on a relative basis which seems to have become the industry standard.
In a profession where it is safer for one’s career to fail conventionally than succeed unconventionally, “outsiders” with strength of conviction have a huge competitive advantage. Our Main Street, USA base in Elkhart, Indiana allows us to ignore the group-think on Wall Street.