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Sell Discipline

Our sell discipline aligns directly with the tenets of our buy discipline: companies must be well-managed, financially powerful, and attractively priced.  Securities are sold when they no longer meet these criteria.  Each investment has a price objective and an investment thesis outlining scenarios of progress to achieve the price objective. 

 

Securities are sold when:

  1. they exceed our price objective, and thus the valuation no longer meets the "attractively priced" criteria;
  2. there is material or relatively permanent deterioration in the fundamentals of the company, thus no longer “well managed and financially powerful” or
  3. more attractive investment opportunities are identified and because the portfolios are fully invested.