Philosophy

Through extensive research and analysis, Boyle Capital seeks to identify outstanding investment opportunities that provide investors with attractive long-term return potential and limited risk of permanent impairment.

Key tenets of our investment strategy include:

Indentifying an Investment’s Intrinsic Value

Identifying the intrinsic value of an investment is the cornerstone of our investment philosophy.

We define intrinsic value as:

• the amount that would accrue to the owners of a security if the underlying company were sold to a rational and well-informed buyer, or
• the amount that security holders would receive if the company was liquidated and the proceeds distributed, or
• the price at which the earnings yield of a particular security is no better than that of a security considered ultra-safe, such as a U.S. Treasury note or bond.

Always Insist on a Margin of Safety

Valuation is the closest thing to the law of gravity in investing and is the primary determinant of long-term returns. In making investment decisions, our goal is not to buy something at intrinsic value, but rather to purchase only when a margin a safety exists. Investing with a margin of safety provides a much needed cushion against the errors and misfortune that inevitably happen from time to time.

Be Patient and Wait for the Fat Pitch

Patience is integral to long term investment success. As Ben Graham wrote in the Intelligent Investor, “undervaluation caused by neglect or prejudice may persist for an inconveniently long time, and the same applies to inflated prices caused by over-enthusiasm or artificial stimulants.” Many investors-professional and individual alike-suffer from “action bias.” There are times when sitting in cash is the most sensible thing to do. To that end, we are willing to stand at the plate and wait for the fat pitch, regardless of how long it takes.

Ignore the Crowd

The great economist John Maynard Keynes once noted that “the central principle of investment is to go contrary to the general opinion, on the grounds that if everyone agreed about its merit, the investment is inevitably too dear and therefore unattractive.”

Successful value investing requires buying when others are selling and assets are cheap, and selling when others are buying and assets are expensive.

Focused Portfolios

Studies show that the overall benefits of diversification are largely exhausted by the time a portfolio has accumulated 15 positions. At Boyle Capital, portfolios generally consist of 10-20 positions.

Focusing on a smaller number of investments allows us to build a high level of knowledge necessary to realistically evaluate the investment and lowers the overall risk of making a poor investment decision. There is no logic in diluting the performance of our best ideas by adding more names to a portfolio simply in the spirit of diversification.

Aligned Interests

To prevent any conflicts of interest and to align our interests with clients, principals and portfolio managers of Boyle Capital are not allowed to own any other publicly traded investments than those in client portfolios.

While Boyle Capital attempts to achieve these objectives, there is no guarantee that these objectives will be met. These strategies may not be suitable for all investors and all investing involves risk, including potential loss of principal.