Long-term oriented but adaptable

• Typically attempting to invest 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 weeks or months

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

• Short-term price movements are an advantage; the greater the mispricing, the greater the potential return

• Maintain and constantly update a list of companies with estimated valuations, along with target investment prices - whether the stock price ever reaches those levels is determined by the market. Again, market fluctuations are to our advantage.

Highly selective and therefore concentrated in best ideas

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

• Portfolio consists of best ideas available at the highest estimated returns, lowest estimated risk of loss, and highest confidence of valuation

Unconstrained – invest wherever highest estimated return exists

• No restrictions by company size, industry, or geography; focus is solely on investing in the most undervalued opportunities

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

• No restrictions allows for analysis across thousands of companies, increasing the likelihood of identifying high-return, low-risk opportunities

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