Our Investment Philosophy

As investors, we are exposed to known and unknown risks, both of which can be very difficult to predict in terms of timing and probability of occurrence. Rather than making market and economic forecasts, Tutuila focuses on building a robust portfolio that should perform well over time regardless of market environments.

Markets are comprised of thousands of different investment opportunities.  Many of these are either too hard to understand or in industries with poor dynamics.  There is a subset of companies though with strong balance sheets, sustainable competitive advantages and shareholder orientated management.  The opportunity does arise from time to time for patient investors to buy these companies at attractive valuations.

By focusing on a company’s long-term prospects, accepting the inherent short-term randomness of stock prices and only buying stocks at a discount to the assessed value of their true economic worth an investor can have a strong advantage over other investors with short-term horizons.  Over market cycles, this approach should provide an adequate risk adjusted performance and protect capital, especially in adverse market conditions.