Davis-Ross Investment Advisers, LLC ("Davis-Ross") is a domestic equity manager committed to purchasing securities of small and midcapitalization financial services companies. We maintain a bias toward quality, capital preservation and companies that offer a high likelihood of success to investors. Our bottom-up approach to selecting individual securities reveals our discipline as fundamental analysts.
Davis-Ross only invests in the highest quality financial services companies that trade at significant discounts to their intrinsic values; thereby simultaneously offering investors a substantial profit opportunity and an appropriate "margin-of-safety."
Our approach to investing is born out of the philosophies of Benjamin Graham and Warren Buffett.
Our primary emphasis is on the preservation of capital, while seeking a satisfactory rate of return.
From Graham and Buffett we learned that certain common stocks have a "perpetual life" and thus their intrinsic value is equivalent to the present value of the residual earnings (cash) available to shareholders.
Additionally, we learned that certain qualitative factors including management, demographics, market share and brands are significant determinants of the consistency and growth of residual earnings.
Simply stated, we seek to own businesses that we can understand, with favorable long-term prospects, operated by honest and competent people and available at attractive prices.
Our approach is not a quarterly endeavor but rather a perpetual endeavor. Therefore, successful implementation of our investment approach requires:
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devotion to the timeless investing tenets "discount to intrinsic value" and "margin-of-safety" and
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patience on the part of the investor/client.
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As Benjamin Graham observed:
"In the short-run, the market is a voting machine - reflecting a voter registration test that requires only money, not intelligence or emotional stability - but in the long-run, the market is a weighing machine."
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