The guiding principle which still distinguishes us today is a core belief in value investing. Though there are many investment philosophies in the marketplace, we have focused on the simple concept that if you seek out and buy companies based on reasonable business valuations, you minimize risk and maximize returns.

Experience has shown us that a company's stock price does not always reflect its real value. This is particularly true during economic downturns and during periods of excessive market hype. At Leith Wheeler we thoroughly evaluate each company before investing and we are guided by rational business principles, not speculation or market sentiment.

Our understanding of the discrepancy between price and value has allowed us to take advantage of some excellent investment opportunities for our clients over time. Attempting to purchase stocks that are undervalued does not mean our portfolios carry excessive risk. On the contrary, our portfolios tend to hold companies with solid balance sheets and quality management, which are trading at a lower price, relative to earnings, than the market. Companies can become undervalued when there is a lack of investor awareness; when an entire industry is out of favour with investors; or when a company experiences a short-term difficulty which, following careful analysis, we believe can be overcome.

As value-investors we invest with a long-term view. Rather than trying to predict short-term fluctuations in a company's share price, we focus on determining the inherent value of each company. Our test for value is viewing any investment we make as if we were buying the whole business. The question becomes: "What price per share, if we were buying the whole business, is the company really worth?"

Our commitment to the sound principles of value investing has allowed us to achieve superior long-term performance for our clients - even when markets are in decline.

Our fixed income strategy stresses liquidity and safety of capital by investing in high-quality notes and bonds issued by the Canadian federal and provincial governments, and by corporations. We invest in corporate bonds when there is an attractive yield advantage over federal bonds. Our fixed income portfolio normally has an average credit quality of "AA."

As in the management of our equity portfolios, we focus on the long-term outlook for interest rates, and structure our portfolios accordingly. These forecasts are reviewed in detail each quarter and adjusted should the economic outlook change.