Investment Principles
Maintaining the integrity of the investment process and its principles is critical for long-term investment success. The Baviello Investment Mangement process is built on the following core principles:
Independent thought.
Opinions and investment decisions are the result of internally generated research and analysis. Such independent thought requires sifting through the daily noise and perceptions to find and analyze the information that is critical to understanding/finding attractive investments.
Targeting mispriced securities, each investment is evaluated to assess its intrinsic value, opportunities, potential price appreciation, and probability of value realization.
Value orientation.
Focus on risk.
Preservation of client’s principal is critical to long-term investment results. Risk is assessed for
each investment and considered in relation to the position's size, potential price appreciation, and the rest of the portfolio.
Selectivity.
Discernment is key. Each company has to meet specific internal criteria, and its opportunity costs are considered before inclusion into the portfolio. The mere potential for price appreciation is not enough.
Long-term horizon.
While holdings within the most strategies have varied holding periods, the strategies are implemented with a long-time horizon and patient mindset.