Don’t interrupt the compounding process.
Simply put, the odds of finding the proverbial needle in the haystack are higher when fewer investors are looking in the same [hay]stack…Some of the ways we [search for that needle] include a) conducting “scuttlebutt” research, especially among smaller stocks; b) seeking out firms with predictive attributes; and c) being more patient than the average market participant.
…we believe patience is [a] key component of behavioural edge. Don’t necessarily jump at the first stock price dip…It is important to keep in mind that “problems” can persist for many quarters or even years. After all, the only difference between salad and garbage is timing.