The popular strategy of the moment is buying indiscriminate portfolios of companies using index funds and ETF's. This provides "market exposure" but ignores how inefficiently or even reprehensibly many businesses operate.
We take the opposite approach and buy a handful of deeply researched, well understood companies that are inexpensive, growing and that operate with an integrity that matches our clients' values. It is concentrated long term investing, focused on small-cap companies.
We expect to hold our investments for long periods of time, judging their success not on the day to day changes of the stock price but on the performance of the operations over a 3–5 year period. We call it our 1,000-day portfolio.
The method works because investments appreciate with earnings and cash flow, and the patient investor who buys the right businesses when the market is skeptical has a wide margin of safety, and with the benefit of time, a greater potential for capital growth.
Long Cast Advisers, LLC, is an independent registered investment adviser located in Brooklyn, NY, investing on behalf of individuals, family offices and endowments.