Investment Philosophy

Investment management begins with a well-defined investment philosophy – a set of fundamental beliefs – that is consistently reflected in a firm's investment methodology. At Willis Investment Counsel, our investment philosophy is framed by four fundamental beliefs:
  1. Value as a Driver of Return Potential.  We believe that the price one pays for an investment asset relative to its risk and growth prospects is of paramount importance. We believe companies with the following corporate characteristics represent the best investment opportunities for our clients:
    • A history of sustained profitability
    • Financial strength sufficient to remain competitive and weather economic downturns
    • A competitive position in an essential industry
    • Intrinsic value that meaningfully exceeds current stock price.
    With these corporate characteristics confirmed, we seek an understanding of the market’s view on the share price and develop a thesis on why the market has mispriced the stock.
  2. Long-Term Investment Horizon.  We believe the market’s view of the value of an investment, as reflected in its price, often fluctuates considerably more than its fundamental attributes. Recognizing that the power of accurately and consistently predicting short-term market trends is slight, we look toward the longer term investment horizon, paying particular attention to the fundamentals of a company that support the realization of investment value over time.  We capitalize on investment opportunities for our clients presented by the divergence of our view of an investment’s long-term value from the short-term perspective of the market.
  3. Independent Research.  We believe independent research should drive investment methodology. While we employ a number of outside investment resources, we rely on our own valuation models and intrinsic value calculations in assessing the attractiveness of an investment opportunity. By developing our own thesis for each investment, we likewise develop the informed confidence to invest in out-of-favor investments and to stay the course during short-term setbacks.
  4. Risk Management.  We believe risk management, effected through consistent implementation of a disciplined investment process, is essential to any investment methodology. Our investment approach stresses evaluation of risk relative to opportunity, a guiding principle that is applied at the acquisition phase of an investment, as well as throughout the holding phase. After qualifying an investment opportunity based on our own assessment of the fundamentals, we apply a price discipline designed to avoid investing at a price premium. Our methodology is designed to discern problems that may cause a temporary price decline from problems of a more chronic, long-term nature. From this comes the potential for capital appreciation.
Willis Investment Counsel

Willis Investment Counsel

710 Green Street
Gainesville, GA 30501

Phone: 770.718.0706
Fax: 770.718.0805
www.wicinvest.com
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