I adhere to the value investing principals originally outlined by Ben Graham and conduct bottom-up analysis when determining the intrinsic value of a business/potential investment. I focus on valuing businesses based on their current cash income, and I strive to not fall victim to (overpay for) overly optimistic growth projections.
I typically invest in unloved or out of favor companies whose share prices have fallen below what we believe they are actually worth. I also do significant amounts of research on potential special situation investments. Some examples of these special situations are spinoffs, recaps, merger security acquisitions, proxy fights, etc...
I believe that the best ...