We begin with a top-down approach that seeks out companies that have a wide economic moat. The idea of an economic moat refers to how likely companies are to keep a competitor at bay for an extended period, thus leading to outsized returns on capital. Characteristics we identify include, but are not limited to, large network effects, valuable intangible assets, cost advantages, efficient scale, or high switching costs. These characteristics build the strength and sustainability of a firm’s competitive advantage. We then employ a bottom-up approach by assessing the long-term value of individual companies. We want to own durable, high-quality businesses that demonstrate the ability to grow future cash flows through any economic cycle. We primarily invest in stocks of larger companies that have relatively low price-to-earnings, price-to-book and/or price-to-sales multiples, or comparatively high dividend or cash flow yields, and which are attractively priced relative to our proprietary calculation of intrinsic value.