The forthcoming issue of The Manual of Ideas will include an exclusive interview with Joe Weidenburner, President and Chief Investment Officer of JRW Financial. The interview includes Joe’s insights into long-term investing in quality businesses.
As a preview, here’s how Joe describes his firm’s investment mandate:
As a hat tip to Warren Buffett, we are governed by two steadfast rules. Rule #1: Never let clients suffer permanent capital impairment. Rule #2: Never, ever, forget Rule #1. We are a registered investment adviser designed to manage separate accounts for individuals, families, and institutions. As such, we are guided by our fiduciary duty to clients to ensure always that their interests are paramount. To that end, we manage two distinct equity strategies to meet the needs for a significant portion of most clients’ investment capital. Our Core Equity strategy seeks out businesses with strong competitive advantages and exceptional prospects for the compounding of per share business value well into the future. We conservatively estimate per share business value, and buy ownership stakes when the price to value relationship is reasonable. We seek high-quality businesses, exceptional management teams, long runways for reinvestment and growth, and a fair price. When we find a business where all aspects align, we buy and hold for the long-term. The temporal component is key. Our blog is titled “Long-Term Investing” because we believe the time horizon with which we view our investment operations is just as important as the qualitative aspects of our business analysis. Our Income Focused strategy seeks out similarly advantaged businesses, but with the added mandate of at least a 2% current dividend yield, and significant prospects for sustaining and growing the dividend well into the future. Ultimately, we will not sacrifice business quality for yield, and will just concentrate the portfolio if we cannot find more advantaged businesses with attractive yields.
The forthcoming issue of The Manual of Ideas will also include exclusive interviews with Chris Mittleman and Massimo Fuggetta. Stay tuned!