WE DON’T JUST THINK LIKE LONG-TERM BUSINESS OWNERS. WE ARE LONG-TERM BUSINESS OWNERS.
We are keenly sensitive to false precision risk. We don’t believe in target prices. We know that value exists within a range, and is hard for even a thoughtful analyst to pinpoint. We are also sensitive to reinvestment risk. Great companies at good prices are hard to find. If we sold them every time they reached fair value, we could struggle to find replacements. Then there is expense risk. Trading and taxes create real costs with real consequences, even if they’re not immediately apparent in headline returns. Our long-term view means that business results, rather than value arbitrage, drive our returns. As such, we have a low inclination to trade.