We call our investment philosophy Focused Business Investing and it can be boiled down to one simple concept: we buy great businesses when they offer us enough return for the risk we are exposed to.

There are a number of things that go into making a business great, but the most fundamental factors are:

Many other smart investors are also looking for these attributes, so patience and conviction are required. Patience to wait for these companies to offer sufficient returns for the risk incurred. Conviction to buy large positions when the returns do materialize. The result is concentrated portfolios of great businesses that we expect to generate superior, risk-adjusted returns over the long term.