Our core investment philosophy has remained largely unchanged for over 25 years. It is a time-tested, consistent, and repeatable

approach that has weathered multiple market and business cycles. While the strategy is intuitive and straightforward in theory, we believe its

successful application demands a high level of discernment and patience.

It is widely recognized that the average return for U.S. equities over the past century has hovered around 9% to 10%. Interestingly, this figure

aligns closely with the return on owners’ equity and often mirrors the growth in book value per share of the typical U.S. company. From this

observation, we concluded that the return on an asset would generally parallel the return on the owner's capital—assuming no distributions

and a stable valuation.

Given our objective to compound our clients’ capital at above-average rates while maintaining below-average risk, our focus has been on

identifying superior businesses. Specifically, we target companies that consistently generate above-average returns on their owners’ capital.