Investment Philosophy

or over five decades, Cooke & Bieler has been in the business of making critical investment decisions for its clients.  While our investment philosophy has evolved and been refined over the years, our fundamental views about investing have not changed.   As a conservative manager of equity portfolios, our investment objective is to provide a superior long-term rate of return but to do so in a low risk manner.  We strongly believe that the key to achieving this goal is the preservation of capital in declining markets.  This fundamental belief is the basis of our "high quality, low risk" approach to investing.

ur process begins with a strong emphasis on high quality companies.  These companies are distinguished by their financial strength, high levels of profitability, strong management, and ability to deliver above average long-term earnings and dividend growth - consistently.  By virtue of these characteristics, high quality companies are attractive to us as low risk investment vehicles.

strong commitment to original research is also an important aspect of our investment philosophy.  We view investing as the process of buying a long-term ownership interest in a business enterprise.  From this perspective an intensive research process is essential.  All potential investment candidates are thoroughly reviewed to fully understand the risks in the underlying business as well as the long-term opportunities.  This process reduces the uncertainty involved in making an investment decision and allows us to maintain concentrated portfolios for our clients.

disciplined approach to valuation ties our philosophy together and is the key to superior long-term results.  We believe that companies have an intrinsic value which is derived from their ability to generate cash flows over a long period of time.  We strive to maximize long-term returns for our clients by purchasing the stocks of high quality, well managed companies at prices below their intrinsic values.

hrough the consistent application of this investment approach, Cooke & Bieler has provided above average long-term results, distinguished by competitive returns in rising markets and superior performance in difficult market environments.

Quotes Regarding Philosophy

"We believe that ATTENTION TO RISK IS IMPORTANT since portfolio volatility can adversely impact a client's long-term commitment to an appropriate asset allocation, as well as their short-term financial condition."

"Throughout our history, we have remained TRUE TO OUR PROVEN STYLE OF INVESTING in high quality companies with above average growth prospects at reasonable prices."

"Members of the firm assume both research and portfolio management responsibilities, thereby benefiting our clients with BROAD-BASED PROFESSIONAL KNOWLEDGE."

"Our process ensures that the thoughts of each of us are considered before an investment decision is made and that every major decision is implemented by all of the firm's professionals.  Should a client have a question about a portfolio, ANY ONE OF US CAN ANSWER IT."

"Most money management organizations consider the portfolio manager to be the key individual in achieving performance.  We strongly believe THE RESEARCH FUNCTION IS THE MOST IMPORTANT DETERMINANT OF SUPERIOR RESULTS."

"CLIENT PORTFOLIOS ARE CONCENTRATED, typically holding 30 to 50 stocks which are characterized by an above average current yield, above average earnings and dividend growth potential, and below average risk."

"Of the approximately 2000 companies that represent potential investment opportunities, the companies that survive our QUALITY SCREENS have proven management and are true market leaders with above average financial strength and profitability."

"Over the long term, share prices reflect an intrinsic value based upon a company's ability to generate cash flow.  Our investment process relies on a STRICT VALUATION DISCIPLINE to insure that our purchases of high quality companies are made at prices at or below their intrinsic value."

"Through telephone updates, timely and accurate reporting, effective meetings, and insightful written materials, we strive to provide SUPERIOR SERVICE TO OUR CLIENTS."

"Short- and long-term objectives, the tax situation, and the willingness and ability to assume risk must be considered in STRUCTURING THE OPTIMAL PORTFOLIO FOR THE INDIVIDUAL INVESTOR."

"Portfolios are constantly MONITORED FOR COMPLIANCE with each client's
guidelines . . . we are organized to assure close supervision over all portfolios."