At Centerstone, we have a long-term investment horizon and assess long-term earnings power, rather than current earnings.
Abhay Deshpande, CFA
Chief Investment Officer
Successful investing requires a strong dose of common sense. As a result, we approach security analysis from a different perspective. We are business analysts, not “equity” analysts. Business analysis is a more holistic approach which includes the entirety of the firm’s capital structure and allows us, in our opinion, to more accurately gauge the prospects for impairment in business value.
As the name of the firm states, we are investors, which implies a long-term time horizon. Since most peers operate on an annual cycle, they attempt to maximize short-term gains. Being privately owned with an employee ownership culture allows us, in our opinion, to more effectively align our interests with our investors.
We define risk simply as the chance for permanent loss of capital. Our distinct investment approach seeks to minimize losses at a portfolio level by trying to have adequate diversification of risks. We will consider holding cash and high quality bonds in the absence of qualifying investments. It is our belief that our security and portfolio-level risk management techniques attempt to address the risk most commonly defined by shareholders: volatility.