Long-term oriented but adaptable

• Core strategy = investments at large discount to private market value (i.e., if business were sold) - as estimated five years into the future

• While many investments are intended to be held for multiple years, some, particularly event-driven situations, may resolve in a matter of days/weeks

Focused on reducing risk of long-term permanent losses, not short-term quotational losses

• Short-term price movements are an advantage; the greater the undervaluation relative to our estimates, the greater the potential return

• Maintain and constantly update a list of companies with estimated valuations - whether the stock price ever reaches a highly undervalued level relative to our estimated valuation is ultimately determined by market fluctuations

Highly selective and therefore concentrated in best ideas

• Typically fewer than 15 investments (often less than 10)

• Portfolio concentrated in best ideas available (i.e. highest estimated returns, lowest estimated risk of loss, and highest confidence in valuation estimates)

Unconstrained – invest wherever highest estimated return exists

• No restrictions by company size, industry, geography, etc. - focus is solely on investing in the most undervalued opportunities

• Many investments are outside the U.S. and/or in smaller, less-followed, and often illquidly-traded companies

• No restrictions allows for analysis across thousands of companies, increasing the likelihood of finding a few new/better investments each year

• Since highly undervalued opportunities often exist in the most ignored/misunderstood companies, many of our investments may appear odd