Companies that fit our criteria are rare. Consequently, our portfolios hold a limited number of companies. Our preference is to invest in companies we plan to hold for many years. Once we invest in a company, we continually re-evaluate the company and its long-term prospects relative to its market price. In most years, portfolio turnover will be low.
- equate the volatility of stock prices with risk; we define risk as the risk of permanent capital loss and/or the risk of not achieving a satisfactory long-term rate of return;
- regularly pursue short-term trading profits;
- give weight to technical stock market indicators;
- make an attempt to benchmark any market index in terms of sector weightings or performance;
- regularly use brokerage research; and
- hedge our foreign currency exposure.