Christopher Davis

Mistakes of judgment are the toughest to learn from, because each one is different. They tend to be in companies in which there has been gradual degradation hard to pick up from the outside either in the competitive landscape or the culture of the company. Because each case is different, it's hard to draw general [...]

Christopher Davis

One of the things about which we're institutionally most proud is having outperformed the S&P 500 in every rolling 10-year period since 1969. That means we've had to be open to change and not just do exactly what had worked for the previous 10 years, because the best funds in any 10-year period are always [...]

Christopher Davis

Our turnover is typically in the single digits. It's great when something goes up 50 percent in a year, but if you sell it you've got transaction costs and taxes and then need to find an incrementally better use for the money. We've never been very good at trimming and adding and, if we're right [...]

Christopher Davis

A common expression we use around here is the Chinese one, “to have known and not to have acted, is not to have known.” We try to fight against statements like “this would be a great investment if it was 10 percent cheaper.” That's a wussy conclusion because you can't be wrong: If it goes [...]

Christopher Davis

We look at the securities analysis part of what we do in the way people look at valuing a bond. Ignoring the maturity date, what you need to know is the price, the coupon, and the reinvestment rate. It would be crazy to value a bond knowing only two of those things and we look [...]