Our Approach

As manager and advisor of the Beaver Funds, we are staunch proponents of the timeless and proven value investing principles pioneered by legendary investors Warren Buffett and Benjamin Graham. Our approach is characterized by a blend of traditional wisdom and a touch of innovation, tailored to meet the unique demands of today's dynamic markets.
 

Key Tenets of Our Approach:
 

1. Focus on Value:
   We prioritize selecting companies that provide good value for your investment. This involves seeking out businesses with attractive valuation measures, emphasizing the difference between value and price.
    

2. Emphasis on History and Stability:
   We have a preference for companies with a proven track record, steering away from newcomers. Our strategy involves a deep dive into a company's historical performance to gauge its resilience.
    

3. Quality Management and Business Model:
   We scrutinize the quality of the management team and evaluate the robustness of the business model, emphasizing economic moats and sustainable competitive advantages.
    

4. Market Cap and Visibility:
   While avoiding excessively small market caps, we seek opportunities in companies that are out of the mainstream view, often overlooked by the broader market.
    

5. Significant Safety Margin:
   We believe in the importance of a substantial safety margin, typically seeking investments with discounts of 50% or more.
    

6. Conservative Growth:
   Our investment philosophy prioritizes capital preservation before growth, aiming for steady and conservative expansion over time.
    

7. Well-Known and Developed Markets:
   We exclusively operate in well-established financial markets, dealing only in trustworthy securities to mitigate unnecessary speculation.
    

8. Sector Selection and Competitive Analysis:
   We meticulously analyze sectors, leveraging Porter's model and competitive analysis to identify sectors or sub-sectors with favorable risk and volatility profiles.
    

9. Long-Term Focus:
   While generally adopting a long-term horizon, we actively monitor all positions for developments that may necessitate adjustments to our strategy.
    

10. Cycles and Market Timing:
    We strategically invest in down cycles, without attempting to time the market. Our philosophy revolves around the idea that it's about time in the market rather than timing the market.
     

11. Accompanying Mr. Market:
    Rather than attempting to beat Mr. Market, we align ourselves with its movements, focusing on companies that are either profitable and growing or undergoing a turnaround phase.
     

12. Financial Health:
    We favor companies with positive cash flows, well-balanced balance sheets, and low debt. High shareholder value is sought through avenues such as growth, dividend payments, stock buybacks, and strategic reinvestments.
     

13. Diversified Exposure:
    While primarily dealing with public companies, we also strategically explore opportunities in private equity.

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Our commitment is to conservative, value-driven investment strategies that prioritize the preservation and gradual growth of our investors' capital. We continuously strive to blend tradition with innovation, delivering exceptional value in every investment decision we make.