Found via Market Folly.
Valuation is the primary driver that informs our investment strategy. Over time the market is meritocratic and rewards investors when they have purchased a stream of future cash flows at a discount. Conversely, the market will tend to punish market participants who have overpaid. Every investment has an expected rate of return from its quoted price over a given time horizon, it is our primary objective to determine what that expected return is and allocate capital accordingly.