Price
We view the investing world more as statistical bell curves than we do as hard scientific facts - we would rather be right than be wrong to the fifth decimal. Rather than designating specific price targets, we flip the Gordon Growth equation to determine the forward looking rate of return on any investment opportunity.
“In the short-run, stock prices are a voting machine. In the long-run, they are a weighing machine.”
We believe patience is a virtue and that attractive opportunities will eventually arise, regardless of the overall market valuation. We believe that by first making our foundation a focus on price paid, we are managing risk for our clients.