We believe that superior long term investment returns

can be achieved by focusing on companies that consistently earn high returns on equity (ROE) while possessing some form of competitive advantage that can be sustained on a multi-year basis. A competitive advantage is typically achieved by the existence of 1) a barrier to entry into the industry, 2) a superior product or service that is not easily replicatable or 3) a superior physical location. Once we have identified a company with an attractive competitive advantage, we then look to acquire shares at a price we deem reasonable in relation to our assessments of the future cash flows of the business. In summary, we attempt to buy outstanding businesses at a reasonable price, rather than inferior businesses with low relative valuations.