INVESTMENT PHILOSOPHY
If you want to accomplish great things, you have to be different. Our simple philosophy runs counter to traditional Wall Street rhetoric.
Market Price Does Not Equal Intrinsic Value…
The market price of a security and its intrinsic value are not the same, and occasionally large differences can and do develop. Stock prices often move significantly from time to time. Many times intrinsic value changes don’t account for stock price movements. This may present opportunities to purchase quality companies at prices at or below a conservative estimate of intrinsic value.
…Intrinsic Value is a Superior Decision Making Standard
Pricing metrics (multiples, ratios, etc.) are subject to economic/market conditions and provide little clarity on long-term company performance, expectations, or rates of return.
Intrinsic value, based on the present value of conservatively estimated future cash flows discounted at reasonable rates of return, provides an objective measure of value independent of market conditions.
INVESTMENT STRATEGY
At Midway Partners Capital Management, our intrinsic value strategy is built on our market philosophy and emphasizes purchasing quality companies at reasonable prices.
Select Companies that Meet Our Quality Criteria
Midway Partners’ quality criteria supports a repeatable and efficient due diligence process by quickly filtering undesirable investments. Click Here to View Our Quality Criteria
Use Disciplined Intrinsic Value Based Decision Making
Select investments selling at or below Midway Partners’ conservative estimates of intrinsic value.
Hold Investments Long Term
Ignore short-term price volatility and hold investments as long as possible to maximize compounding and minimize taxable gains until a superior opportunity becomes available.
Prepare for Volatility
It is important to be prepared for material price movements. Therefore, we believe that cash/short term equivalents (treasuries) is an important part of any investment program. Having the liquidity available to take advantage of attractive price opportunities is important for long-term returns and peace of mind. We typically recommend allocating a portion of investable capital to these securities.