By staying true to our investment philosophy, we seek to provide our clients long-term outperformance with an emphasis on downside protection in the short-term. Our approach is contrary to those looking for short-term gains. We focus on business fundamentals to determine underlying investment risks, and continually strive to understand how businesses operate and how those operations are reflected in the financial statements.
Our investment philosophy is grounded in the following:
- We are investors with a long-term horizon
- We are highly selective – few businesses meet our quality criteria
- We focus on the risks that matter – striving to avoid the permanent impairment of capital
- We attempt to "win on defense" – emphasizing downside protection in the short-term to preserve the capital base for future opportunities
Temperament allows Clarkston Capital to execute on its quality value philosophy.
- Discipline – to purchase those companies only when trading at reasonable discounts to our estimates of their intrinsic values, and at levels that provide reasonable risk-adjusted margins of safety
- Patience – to hold onto those companies until their prices align with what we believe are their intrinsic values
- Courage – remain committed to our investment philosophy in the face of short-term risks and opportunities