Investment Philosophy

Investment Philosophy

Wealth creation begins with a sound investment philosophy that is adhered to through all market conditions. At FAMR, we consistently practice the Absolute Value Investment Philosophy.

As Absolute Value investors, we seek opportunities that minimize price risk and, based on a company's absolute value, display a high potential to create wealth over the long term.

To manage price risk, we identify companies that are out of favor, distressed, or unpopular under the current market conditions and are selling at or near their book value, or net asset value. We then determine if the company is being unfairly valued, which would provide a buying opportunity at a reduced price.

To determine if the company is being unfairly under-valued, the FAMR research team peels back the layers of each potential company to evaluate every aspect of the company. We derive the company's absolute value from a multitude of variables, including management's competency and experience, earnings potential, free cash flow, current debt, replacement cost and sector fundamentals, to name just a few aspects.

After assessing a company's absolute value, we then determine if enough disparity or gap exists between our assessed 'Absolute' value and its current market price. This gap represents our margin of safety. FAMR's investment decisions are based on the margin of safety.