Scott Value Investing utilizes a value investing approach, buying shares of companies that show sustainable high profit margins, high free cash flow, strong balance sheets, and selling at a price below their true worth. Over time, a company's stock price will converge with the company's intrinsic value, which is the estimated present value of the firm's future cash flows.
On average, SVI portfolios have lower volatility than the market as measured by the Standard and Poors’ 500.*
Principles . . . SVI believes:
• That preservation of capital is as important as growth
• In a long-term, value-oriented approach to investing
• In regarding companies as partners rather than mere individual stocks
• That successful investing is dependent on discipline, patience and careful thought
• In an investment analysis approach as outlined and practiced by investment managers such as Benjamin Graham, Charlie Munger, David Dreman, Philip Fisher and Warren Buffett
Practices . . . SVI invests in companies that:
• Are highly likely to have high profit margins 10 years from now.
• Show sustainable high profit margins
• Maintain strong balance sheets
• Possess the ability to generate significant free cash flow
• Have growing and reasonably predictable sales and earnings
• Demonstrate the discipline to deploy excess cash for the best long-term interest of the shareholders
• Exhibit superior, ethical and honest management
Roger Scott uses proven valuation and pricing tools for selecting investments that match clients’ financial goals. He manages all his clients’ accounts personally rather than relying on an outside hierarchy of expensive asset allocators and managers.
* Past performance is not necessarily indicative of future results. Clients cannot invest directly in an index.