We get to know and continually scrutinize first-class entrepreneurs because we believe it is their vision, boldness and passion for excellence that inspire organizations to greatness.
These entrepreneurs are truly the heart and lifeblood of corporate growth, which is the basis for the creation of shareholder wealth. We do not relate to companies as stock prices or quarterly projections, but as people with aspirations, with disciplines, with fears, with failures, and with an incandescent passion for being the best at what they do. How people treat each other with basic respect and common decency leads to relationships that celebrate and bring forth optimum results from and for everyone.
The number of our investments is limited to nine or ten companies because only then can we be assured of an intensity of conviction that nearly keeps us awake at night. We believe that three quarters of the risk that can be eliminated through diversification is achieved with nine or ten companies. Beyond that number we may gain a little more diversification, but at the cost of losing conviction.
Steginsky Capital relishes "intelligent discomfort." We want our investments to always be "works in progress." The value of meeting people is continuing to get to know them, to being surprised by quirks or flaws, to watching how people respond to a harsh turn of events or to a grave misjudgment of character. We welcome the kind of mistakes that foster creative breakthroughs. We are searching for elasticity of heart and mind within a framework of rigorous accountability and trust.
When we make an investment, it is our intention to own it for a very long period of time. We believe this enforces a discipline of only studying the issues that are relevant to long-term wealth creation. We never try to predict the short-term direction of the market or specific stocks. Volatility in the markets does not disturb us. In fact we embrace volatility as one of the reasons for the generous wealth-building power of the market over time.