JDP PORTFOLIO

Philosophy and Discipline

"It is worth noting that few money managers invest their own money along with their clients' funds. The failure to do so frees the manager to single-mindedly pursue their firms', rather than their clients' best interests."

- Seth Klarman

At Del Principe | O’Brien Financial Advisors, we are fundamental value investors. The combination of value investing with quality and analyzability distinguishes the JDP Portfolio investment program. We believe our hallmarks - value, quality, and analyzability - create a resiliency in our portfolios. Our sole aim in crafting our investment program is to maximize long-term investment returns. JDP Portfolio employs a repeatable process to identify undervalued securities. We believe we have engineered our investment program to create the greatest likelihood of success.

Value

"Price is what you pay; value is what you get."

- Benjamin Graham

We seek to own shares of companies that are trading at substantial discounts to their intrinsic value. Purchasing securities at discounts to intrinsic value should create a margin of safety and allow for uncommon return generation. We believe that the greater the discount, the greater the potential for investment return.

Quality

"If you've settled on the value approach to investing and come up with an intrinsic value for a security or asset, the next important thing is to hold it firmly. That's because in the world of investing, being correct about something isn't at all synonymous with being proved correct right away."

- Howard Marks

While attractive valuation is the most important thing, it is not the only thing we require in an investment. We will only invest in quality companies. We seek businesses that we believe will generate attractive returns on their invested capital. We seek resilient businesses, those with reasonable debt levels, positive growth, attractive margins, competent management, and the flexibility to react to all phases of the business cycle.

Analyzability

"With a wonderful business, you can figure out what will happen; you can't figure out when it will happen. You don't want to focus on when, you want to focus on what. If you're right about what, you don't have to worry about when."

- Warren Buffett

We will only invest in companies we can thoroughly analyze and understand. Certain businesses do not lend themselves to fundamental analysis, either because of complexity or opacity. We believe that the better one can analyze a company, the more likely one is to be right.