BBH Investment Philosophy

At BBH our goal is to protect and grow our clients’ capital through the disciplined application of our investment approach. At the core of our investment approach is a set of principles that apply to each of our investment strategies.

We employ bottom-up fundamental research to make our investment decisions: Our investment decisions are made on the basis of our analysis of individual businesses and securities rather than top-down economic views. Our investment teams conduct in-depth, fundamental research on each investment. We insist on knowing exactly what we own and why we own it.

We take a value-based approach to investing: At BBH, we believe that the best way to protect and grow capital is by investing in undervalued securities.

We are focused on capital preservation: We view risk not as volatility, but as the likelihood of permanent loss of capital on any investment.  We seek to reduce risk by investing with a margin of safety. This requires being disciplined about both the price we pay and the quality of the underlying business or asset that we own.

We approach investing with discipline and patience: We will only commit capital to investments that meet our investment criteria. This requires the patience to hold cash when nothing meets our criteria, the discipline to sell securities when they no longer offer acceptable returns relative to their risk, and the willingness to invest in attractive opportunities even when there is negative sentiment about the market or business itself.

We take a long-term perspective: Our Partnership structure and the stability of our client base allow us to take a long-term perspective when making investment decisions. We judge success not by short-term relative performance but by our ability to protect and grow our clients’ capital over meaningful periods of time.