BWFA Investment Philosophy and Approach

We utilize a bottom-up, value-based, fundamental research approach. We endeavor to select those securities that we believe represent the most attractive opportunities for our clients over the long term. We do not believe that long-term goals can be met by chasing short-term results. Instead, we focus on the bigger picture while also paying attention to the investment environment. Our core investment time horizon is typically three to five years.  This can be seen in our low portfolio turnover. Thus, we are long-term investors.

Our investment objective emphasizes total return; i.e., a combination of long-term growth of capital and current income. In pursuing this objective we focus on investing in securities that we believe are undervalued at the time of purchase and have the potential for growth. A guiding principle is the consideration of equity securities, such as common stocks, as units of ownership of a business that we endeavor to purchase when their price appears low in relation to the value of the total enterprise. We invest in securities of U.S. and non-U.S.-based firms, and may hold shares in small-, mid- and large-cap companies.

We typically sell a security when the company shows deteriorating fundamentals, its earnings progress falls short of our expectations, its valuation appears excessive relative to its expected future earnings, management has made missteps or changed strategy, the original thesis for buying the shares no longer applies, or we have accounting-related concerns. We may adjust positions in order to maintain appropriate portfolio diversification.