Our fundamental strategy is to buy the most earning power for the fewest dollars. We often recommend companies that are not necessarily institutional favorites - sometimes unpopular companies, even unrecognized companies, and yet major players in their markets.

We believe basing investment decisions solely on stock market timing is counterproductive. Instead, our research is focused on addressing the economic, social and political environment leading us to sectors in the economy that will thrive and to which capital will flow. We then apply evaluation standards to find businesses that will benefit the most.

As part of our ongoing research on companies, we maintain communication with company managements. We visit them and they us to further our insight into the quality of the leadership that drives a company's performance.

We work from a core set of investment principles:

Invest in companies which we judge to have the highest future return on capital and free cash flow, the most undervalued assets, and the clearest future economic benefit at the lowest investment cost.     Find supply/demand imbalances in the economy, determine the industries that will benefit from those imbalances, and invest in the best-managed companies in those industries.     Identify global opportunities and the most appropriate beneficiaries.     Focus on companies that are entrepreneurially managed for the benefit of shareholders and where management has a significant stake in realizing shareholder values.     Perform contingency analyses to examine the investment impact of various potential scenarios to anticipate and respond to sudden changes in the investment environment.