We try to explain our investment philosophy by way of this monthly communication. It is important to us that our clients understand this philosophy. We want clients who are comfortable with our point of view, because it will not change. We are sure that there are managers who are successful using entirely different methods, but we will stick with the approach that we understand and that has worked for us in the past.

There will be periods in the future, as there have been in the past, when our approach does not work well, when we are out of step with what is popular on wall street, but we will stick with what we know. It is important to us that our customers understand this, and that they are comfortable with our philosophy. Clients with a short term perspective can be a problem for a manager.

Yet a manangers performance is almost universally evaluated using short-term results - managers are compared using quarterly, monthly, or even daily returns, creating pressure on managers to focus on short term performance. "Managers who do well in the short term are rewarded with more assets," he said. "Those who do not do well in the short term often don't survive to see the long term."
"Managers who do well in the short term are rewarded with more assets," he said. "Those who do not do well in the short term often don't survive to see the long
term."
"Money managers know the Sword of Damocles is poised to fall on them next," he added, which forces them to sacrifice long-term wealth creation to pursue short-term gains.

This is a collection of our monthly newsletters for the last ten years. Click a selection to view a synopsis of the letters by year.