We strive to identify outstanding businesses with superior growth and profitability. We gain a thorough understanding of these companies through extensive research and to make investments only when the market presents opportunities in which attractive long-term returns may be achieved with limited downside risk. Our investment philosophy is grounded in three tenets:

We are focused on owning businesses that share the following characteristics:

• Predictable and growing streams of cash earnings; annual EPS growth typically in excess of 10%

• High or rapidly improving returns on invested capital

• Expanding barriers to competition

• Clean or rapidly improving balance sheets

We want to know our businesses better than anyone through independent, granular and continuous research. Investment ideas are generated and vetted internally with the assistance of a dedicated team of qualitative field analysts.

We wait patiently for the market to present opportunities to deploy capital at attractive discounts to intrinsic values.