We focus our capital in a select number of what we believe to be extraordinary businesses. These companies meet specific standards related to the business itself, the people who manage it, and the discipline they demonstrate when it comes to reinvesting free cash flow1.
1Free cash flow (FCF): the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.
2Return on investment: the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.
3Book value: the net asset value of a company calculated by total assets minus liabilities.