Intrinsic Investing

Please read important disclosures at www.ensemblecapital.com/holdings. Companies are not static assets like gold or artwork, but in a state of constant change. Over a long enough timeline, the company you own today will be quite different from the one you originally bought. As long-term investors, then, we need to periodically reaffirm or alter our perceptions of the companies we own. Buying a company and passively holding it is something other than investing.

Please read important disclosures at www.ensemblecapital.com/holdings. Even the highest quality companies will likely encounter large sell-offs over a decade. Sometimes those sell-offs are justified, other times they present tremendous buying opportunities. Long-term investors need to know the difference. This episode discusses how Ensemble evaluates such events and determine whether to buy, sell, or hold.

Please read important disclosures at www.ensemblecapital.com/holdings. Milton Friedman's concept of shareholder primacy is outdated. While the goal of shareholders is to earn profits, these profits are the outcome of successfully creating stakeholder value on behalf of customers, employees, suppliers and society at a large.

Please read important disclosures at www.ensemblecapital.com/holdings. During our second quarter 2021 portfolio update, Ensemble Capital's Chief Investment Officer Sean Stannard-Stockton, and Senior Investment Analysts Arif Karim and Todd Wenning, discussed the current market and economic situation, and two of our holdings, Illumina and Nintendo. This is an audio replay of the full webinar.

Please read important disclosures at www.ensemblecapital.com/holdings. At times, companies can get caught up in what's working now and ignore that the present circumstances are unsustainable. Unless they course-correct, they are creating an off-balance sheet liability for shareholders.

Please read important disclosures at www.ensemblecapital.com/holdings. Quality investors often focus too much on the moat and not enough on the castle (i.e. the business), but the moat doesn't matter if the castle it's protecting is deteriorating.