Investment Philosophy

Our investment philosophy, based upon conclusions drawn from years of study, observation, interviews and our own experience, is grounded in the following fundamental beliefs:

• Common stocks will outperform other asset classes over the long-term. Therefore, equities will virtually always be present in our portfolios.
• Returns on seemingly low-risk investments can be eroded by inflation.
• All assets have an "intrinsic value" – that is, the value that a rational and informed buyer would pay for the asset in an arm's length transaction.
• Investors sometimes behave irrationally, causing asset prices to be much more volatile than underlying intrinsic value, which in turn creates disconnects between price and value.
• Investors who can be rational when the market is irrational can frequently earn excess returns. It is very difficult to be a rational investor and extraordinarily good investors are few in number.

These concepts form the basis of the value investing principles pioneered by Benjamin Graham and put into practice with spectacular results by Warren Buffett and Charlie Munger of Berkshire Hathaway, Inc. Tim Medley began following the activities and teachings of these influential investors in 1983, and since 1987 one or more representatives of this firm has attended every annual meeting of Berkshire Hathaway in Omaha, Nebraska.