Our basic investment philosophy is that fundamentals will eventually be reflected in stock prices. We believe there is no virtue in being bullish or bearish per se, but in being right for the right reasons. What matters is at the end of the day is helping our clients make money. This is best done by doing primary research out on the field to try to anticipate new developments and trends before they become obvious and identified in the market-place. There is no substitute for field work to obtain data points, help to elaborate or substantiate a theory and refine the thesis as new evidence confirms or denies the basic premise one holds. The key is to be flexible and open to understand what is really happening rather than trying to make the facts fit the theory. We combine our field work with basic logic, human psychology, sound economic theory, personal experience, and the input from trusted industry sources to help put together a mosaic that results in our fundamental outlook. We travel constantly all over the country visiting hundreds of homebuilding communities every year and meet with industry executives, community sales people, land brokers, field management, real estate brokers, subcontractors, and other local industry experts who contribute to our research process. Our goal is to be at the forefront of the industry at all times.
We believe that our clients are best served by an independent point of view that is not clouded or influenced by the well-known conflicts of interest inherent in working for an investment bank whose primary clients are ultimately the companies themselves and not the investors. We believe in the value of industry consultants, but are also cognizant of the inherent conflict of interest most have since their primary clients are again the builders and not the investors. Thus our interests are aligned with those of our institutional clients who look to us to provide them with honest, unbiased, leading-edge, fundamental research and information that is timely and they can trust and rely upon to make their investment decisions. Our primary goal is for our clients to preserve their capital and secondly to help them earn profits by making well-thought out directional bets on the sector and and relative calls among the companies. We believe this has served our clients well thus far and hope to continue to be of value add in the years ahead.