Lowell Capital Management

“Our acquisition preferences run toward businesses that generate cash, not those that consume it… However attractive the earnings numbers, we remain leery of businesses that never seem able to convert such pretty numbers into no-strings-attached cash.” Warren Buffett At Lowell Capital Value Management, we are highly focused on future cash flow as it is a fundamental determinant of intrinsic value. #LowellCapitalValueManagement #freecashflow #valueinvesting

"There are lots of ways to develop edge as an investor. One of the ways is deep fundamental knowledge." - Seth Klarman At Lowell Capital Value Management, we conduct rigorous qualitative and quantitative research to identify opportunities in companies that are fundamentally misunderstood or insufficiently covered by the market. #LowellCapitalValueManagement #freecashflow #valueinvesting

"Great fundamental investors focus on understanding the magnitude and sustainability of free cash flow." - Michael Mauboussin Focusing on businesses that gush cash is a core part of our investment philosophy at Lowell Capital Value Management. #LowellCapitalValueManagement #valueinvesting #freecashflow

"In a (great) business, you have to look for this: the advantage that it established, for whatever reason it established it, is getting stronger and stronger and stronger.” - Li Lu Great, competitively advantaged businesses are rare. At Lowell Capital Value Management, we look for rare opportunities to invest in great businesses that are out of favor. #LowellCapitalValueManagement #valueinvesting #freecashflow

“Time is the friend of the wonderful business, the enemy of the mediocre.” — Warren Buffett At Lowell Capital Value Management, we focus on wonderful businesses that can compound capital for the long term. #LowellCapitalValueManagement #valueinvesting #freecashflow

"I learned to go into business only with people whom I like, trust, and admire." - Warren Buffett Assessing management quality is a key part of our strategy at Lowell Capital Value Management. We look for honest and intelligent management teams that are highly focused on driving shareholder value. #LowellCapital #valueinvesting #freecashflow

"Simplicity is the ultimate sophistication." - Leonardo da Vinci At Lowell Capital, we focus on investing in simple, free cash flow generative, growing businesses with high returns on invested capital and "Ft. Knox" balance sheets. #valueinvesting #LowellCapital #freecashflow

Terry Smith, CEO & CIO of Fundsmith, had the following comments on macro events and market timing: “when it comes to so-called market timing there are only two sorts of people: those who can’t do it and those who know they can’t do it. It’s safer and more profitable to be in the latter camp. I am amazed by how much time and effort people waste trying to guess what will happen to known unknowns. Brexit, China, commodities, interest rates, oil price, quantitative easing, and the U.S. presidential election are all known unknowns.” Our approach is well-aligned with Smith. We do not try to time the market. We stay focused on what we can control, which is our deep research-intensive process of business analysis and our due diligence process. This includes making sure we know the economy’s fundamentals, the “competitive moat” of the company, its growth path, its balance sheet, and detailed conversations with the management. We’re just looking for a handful of those that have a good growth path. Our objective is to buy growth companies at value prices. Our June letter is available to accredited investors. Please reach out to info@lowellcap.com for a copy. #LowellCapital #freecashflow #valueinvesting

Charlie Munger said the following on the importance of return on capital: “Over the long-term, it’s hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over forty years and you hold it for those forty years, you’re not going to make much different than a 6% return – even if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over twenty or thirty years, even if you pay an expensive-looking price, you’ll end up with one hell of a result.” Almost all the investment positions we own earn high returns on invested capital, allowing us to compound capital for many years. Our approach is closely aligned with the quote from Charlie Munger. We believe we are invested in high-quality businesses that can compound capital over several years. As a result of their high ROIC, our investments generate large and sustainable amounts of free cash flow as they are not capital-intensive. These business models give us the best opportunity to grow capital in a disciplined manner over long periods of time. #LowellCapital #freecashflow #valueinvesting

"Know what you own, and why you own it." - Peter Lynch At Lowell Capital, we want to know something that others don’t, and which is important in understanding the underlying value of the business we are investing in. We then try to invest at a deep discount to our estimate of fair value. Our research-intensive process allows us to dive deep into key fundamental facts about the companies that we invest in. We believe there is an opportunity to identify important and impactful facts of our investments and, thereby, anticipate strong future results. This due diligence process allows us to vet each investment opportunity in detail so we can gain deep understanding of the business model and ultimately decide if it is worthy of having a spot in our portfolio. We seek to have a superior understanding of the business models we invest in and thereby follow Peter Lynch’s sage advice: “know what we own”. We believe few investors truly take this approach and it creates an opportunity for a competitive advantage in the investing world. #LowellCapital #freecashflow #valueinvesting