Our definition of quality allows us to focus on a very narrow set of companies; ones that have (1) the ability to generate superior returns on incremental capital, (2) competitive advantages to protect these above average returns, (3) and future reinvestment opportunities to sustain growth.
Our definition of value allows us to focus on a specific set of stocks; ones that the market has underpriced relative to the company’s future cash flows. Our valuation discipline prevents us from the pitfalls of short-term speculation and allows us to own stocks that deliver steady compound growth over the long-term.
“Fairbanks Capital is focused on owning quality companies with high-conviction for the long term. We seek to acquire exceptional and innovative industry leaders that possess a proprietary business advantage. Such companies can leverage capital reinvestment at high rates of return to compound their growth over time. We attempt through careful valuation work to execute purchases at a meaningful discount from Intrinsic Value. We believe this leads to sustained outperformance versus the market.”
- Steven L. Re’, CFA, Founder & Chief Investment Officer
To learn more about our strategy, please click on the following principles listed below: