- There is a strong correlation between above-average investment performance and error avoidance. To achieve long-term success, an investor must first consider downside risk before considering the potential for appreciation.
- A company's stock price often falls below its private market value due to temporary problems such as missed earnings estimates, overreaction to short-term results or overall negative market psychology. These short-term deviations may present viable opportunities for the patient, long-term investor.
- Excess cash flow is the lifeblood of a business and is the primary determinant of a company's private market value. Companies that generate excess cash flow have the potential to enhance shareholder value by increasing dividend payments, repurchasing company shares, reducing outstanding debt, engaging in strategic acquisitions, or withstanding an economic downturn without adopting harmful short-term strategies.
- Forensic analysis of financial statements reveals the quality of a company's earnings, the success of its strategy, sustainability of its performance and impact of management decisions on future cash flow. Forensic analysis of financial statements is more useful to an investor than management forecasts or earnings guidance.
ROLE IN YOUR PORTFOLIO: A value-oriented vehicle for building wealth or accumulating assets for long-term goals; provides exposure to the broad U.S. equity market by seeking investment opportunities across all market capitalization and style classifications.
MANAGED by Robert A. Olstein since inception on September 21, 1995 and Eric R. Heyman since October 2008.
ROLE IN YOUR PORTFOLIO: A value-oriented vehicle for building wealth or accumulating assets for long-term goals; a mutual fund that provides exposure to activist situations in small- and mid-cap companies (an arena dominated by hedge funds and private equity investors).
MANAGED by Eric R. Heyman and Robert A. Olstein since inception on November 1, 2006.