We invest in sound businesses at attractive prices for the long-term and in cash and equivalents if such opportunities are unavailable.  Inherent in our philosophy are two foundational principles.

 

Principle I:  We believe priority should always be given to the protection of one’s investment principal.  Accordingly, we first seek to minimize risk to principal by investing in businesses we believe have defensible competitive positions, sound financials and solid operating track records.  We believe these businesses tend to be lower risk and are more likely to see a continuation of operational success into the future.  To further mitigate risk, we will only invest in a business at a price we believe represents a discount to our estimate of its intrinsic value thereby providing a margin of safety.  If we are unable to identify attractive investment opportunities, we will forgo investment and simply remain in cash and equivalents.  More succinctly, we will be fearful when others are greedy and greedy when others are fearful.

 

Principle II:  We invest in businesses and do not speculate in securities.  Our approach is to invest as if we were going to own an entire business and not just a partial interest.  This allows us to operate with an owner’s mentality meaning our investment thesis is based on an understanding of the fundamentals of a business and a long-term view.  This is important as we believe security performance over the long-term will reflect the operating performance of the underlying business.  By focusing on the long-term and business fundamentals, we believe we are able to filter out market noise allowing us to avoid costly emotionally driven mistakes.  We believe the elimination of emotion from the investment decision process is imperative for long-term investment success. 

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If you would like to learn more about Fischer Capital Management LLC, please contact us or view our Investor Presentation.