The McElvaine Investment Trust
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We are value investors

Our video to the left talks a little more about how we approach investing.

The bottom line is we invest when:
  • we have a competitive advantage (or in other words, when the seller does not care about the price);
  • when there is a margin of safety (a large difference between where the stock is trading and what we think the company is worth);
  • when the balance sheet and competitive position of the company provide staying power; and
  • when we feel the Board and Management interests are aligned with ours

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​Margin of Safety



​A Margin of safety is fundamental to what we do.  Just like when you go shopping and look for a bargain, we look for bargains in the stock market. Margin of safety simply means there is a big difference between what a stock is worth and what we are paying for it.
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​Why would someone sell something for less than it is worth

Two key reasons:
  1. They are scared or bored and just want to get out. For example, we were investing heavily in Japan in 2012 when people thought Japan had no future; or
  2. There is some type of impediment to investing. For example, we look for companies where there is dislocation. We recently bought shares of a company which was being spun-out of a larger company.
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​​Alignment of interests

The key question is are the Board and senior managers in the same boat as the shareowners?

Tim McElvaine has served on the Board of Directors of 4 publicly traded companies and several compensation committees. This has given us perspective and insight few fund managers have.


Let's keep in touch!

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​Please sign up for our (infrequent) newsletter. We don't like spam either so won't take your trust for granted. 

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Buying dollar bills for 50 cents since 1996


Address

301-1321 Blanshard Street
Victoria BC  V8W 0B6

Telephone

250-708-8345

Email

info@avaluefund.com
  • Home
  • About Us
  • Contact
  • A Christmas Carol for Value Investors