Paul E. Patrick
A Certified Public Accountant with nearly two decades of experience as an Equity Research Analyst, Paul seeks to combine his accounting knowledge and quantitative skills to effectively analyze financial statements, find good companies trading at discounts relative to their intrinsic value, and uncover investment ideas that are overlooked or misunderstood by the market.
Portfolio Construction and Management
Paul is a “bottoms-up” stock-picker, using a fundamentally-oriented, research-intensive process to carefully analyze and value potential investments. A prudent, rational, and patient investor, Paul uses a strict set of criteria to select 20 – 30 stocks that, in his view, possess the best risk/reward parameters. For each new investment he makes, he typically analyzes dozens of alternative ideas and carefully weighs the downside risk of each. Additionally, as part of his portfolio management strategy, Paul generally holds a significant amount of cash. This allows him to be prepared for opportunities that occur when stock prices decline.
When evaluating potential investments, Paul looks for:
- Good, easy-to-understand businesses.
- Talented, shareholder-oriented managements that are skilled and prudent capital allocators.
- Companies with strong financial health.
- A margin of safety. Specifically, he looks for stocks that are trading at prices below his assessment of intrinsic value.
- A potential catalyst that would cause the stock price to trade up to its “true”—or intrinsic—value.