Our Investment Research Analysts have already spent considerable time on the road this year at industry conferences, meeting with companies, and speaking with management teams. We call this “Kicking the Tires.” Our experience dictates that this is the best way to make informed, insightful investment decisions. Investment Research Analysts Paul Hogan and Andrew Boord were recently on the road visiting one of our holdings in the Technology Sector, touring the company facility, and speaking with the management team.
Some questions asked at these company visits include: trends in the business, the competitive environment, and financial goals such as how fast they project to grow. We look for businesses that have strong free cash flow and like to see that they allocate this capital wisely. In subsequent meetings, we determine if they have met these capital allocation goals.
Overall, we want to get to know management intimately over time and it’s important to see how their view of their operation changes — especially during periods of adversity. Meeting with management is just one step of Fenimore Asset Management’s time-tested, disciplined, repeatable investment process.