Art Over Science
Our view is that great investing consists of more art than science. Though we understand and acknowledge certain strengths of academic approaches to investing (beta, volatility, VAR, etc.), we do not operate in a manner constrained by them. These metrics are backward looking by nature and, looking forward, we believe over-reliance on them is likely to underdeliver.
Keep It Simple
We adhere to Warren Buffett’s most basic investment advice: that great investing is simple, but not easy. Investing offers no extra credit for degrees of difficulty, so we scour the world for “no-brainer” investments and investors, heavily relying on examples of past success to help us evaluate them. For Conover, these opportunities often come in the form of exceptional investment managers with a disciplined history of success, a long-term focus, tireless motivation, and an ability to adapt to ever-changing opportunity sets.
Long Term Focus
One of the most reliable sources of outperformance in today’s increasingly short-term world is the ability to cut through daily noise by focusing on long-term results. Emphasizing processes over outcomes helps properly guide our attention in the short-to-medium term.
Three Readings That Have Shaped Our Thinking
The Intelligent Investor, by Benjamin Graham
Berkshire Hathaway: Letters to Shareholders, by Warren Buffett
Pebbles of Perception: How a Few Good Choices Make All the Difference, by Laurence Endersen