PHILOSOPHY  

Our firm’s investment philosophy is based upon the premise that Greatness Matters^SM, and our focus is on owning higher-quality companies.  This age-old truth dates back to Heraclitus, circa 500 BCE, who observed, “Character is destiny.”  Although the future is unknowable, who you are reliably predicts what you will accomplish.  Truly great companies have the ability to beat their competition in good times and transform themselves in challenging times.  High quality companies are more likely to deliver consistent results and less likely to deliver nasty surprises.  A balanced and diversified portfolio of their stocks is thus more likely to provide superior investment results.

What distinguishes us from other investment managers is our unique four-part investment process, which integrates a rigorous qualitative assessment of a company’s character and competencies into a traditional financial analysis framework.  Based upon the Leadership Diamond^®, a conceptual model of Greatness created by philosopher Peter Koestenbaum, the assessment tools and methodologies have been developed, refined and put into practice with many major corporations around the world over the past decade.  

While character may not be able to be measured in a strictly scientific sense, it can be observed, evaluated and assessed.  When we assess an organization, we are concerned with both who they are (Character) and what they do (Competencies).  We are interested in companies whose relative strength in Character and Competencies will likely lead to their success over the competition.

Large, modern corporations are complex, dynamic systems, and thus vulnerable to imbalances leading to instability.  As long-term investors, we are interested in companies who can dynamically balance the often opposing yet equally important forces constantly at work within an organization. 

 2008, Diamond Portfolio Advisors, LLC.
The Leadership Diamond ® is a registered trademark of Peter Koestenbaum