PI Investment Management is a boutique investment firm that follows a value-oriented approach to selecting equity investments. We have adapted historical value investing techniques to coincide with today’s market conditions. This entails a detailed analysis of the overall business practices of the target company. Much of the analysis is placed on management’s competencies, company profitability, competitive forces, and financial metrics. Conversely, far less emphasis is put on short term market conditions. We view ourselves as business analysts, not as market analysts, or security analysts.
We do allocate a certain margin of safety with each investment to allow for a reduction in the overall portfolio risk. That being said, we strongly believe that when you invest in solid companies with predictable earnings that will be materially higher in five to ten years; the margin of safety is not always validated.
In the long run we believe the market price of a company should approximately equal the change in value for that company. Understanding that in the short run prices can swing above or below a company’s value for any number of illogical reasons.
During times of high market volatility we may stray from our investment strategy and include a larger portion of fixed income securities in our portfolio to protect capital until more encouraging market conditions appear.