Investment Philosophy
Our philosophy:
- Challenge conventional thinking to discover real value.
- Develop unique perspectives by looking beyond reported earnings.
- Purchase inexpensive stocks to increase upside potential and decrease downside risk.
At SKBA we have never wavered from our value investment philosophy. The guiding
principles on which our firm was founded still define our investment approach today. Our investment
approach is based on our philosophy that stock prices fluctuate more than the underlying fundamentals that
determine value. We believe a skilled investment team can identify discrepancies which arise between stock
prices and their underlying or intrinsic value. Whether equities or fixed income, our research process
rigorously uncovers the fundamental elements of a company.
Our philosophy involves avoiding short-term trends and market timing. We are patient investors
that look for undervalued companies that are well positioned for structural changes and have strong market
positions. We seek to outperform the market over an economic cycle through the consistent application of our
investment philosophy and process, offering a higher probability of providing consistent and predictable returns.
Key Investment Principles
- We believe that financial markets are inefficient and that our valuation disciplines present us with repeated opportunities to buy when expectations are low and to sell when prices fully reflect the best outcomes.
- Our investment process involves avoiding short-term trends and market timing. We are patient investors that look for companies that are well positioned for structural changes and have strong market positions.
- We utilize unique valuation disciplines, our initial valuation frameworks that do not focus on reported earnings of a company are strong indicators of long term capital appreciation opportunities.
- We conduct our own company and industry research and believe an appropriately diversified portfolio of actively-managed securities is a prudent and effective way to manage risk.
- We minimize risk by avoiding high expectation stocks for which the perceived future opportunity has already been discounted.
- We believe in a team-based approach to portfolio management whereby multiple perspectives are better than an individual one.
