Brown Brothers Harriman (BBH) Investment Management employs what we view as a low-risk approach to equity investing guided by consistent, objective, and rational decision-making. We rigorously apply a comprehensive set of investment criteria to our portfolio that aims to generate attractive risk-adjusted results for our clients over the long term.
Our key guiding principles:
- Invest in established, cash-generative businesses that are leading providers of essential products and services.
- Require that investments be purchased at a discount to our estimate of intrinsic value* (e.g., a margin of safety** in the stock price) at the time of purchase.
- Invest in a limited number of companies to minimize the impact of unforeseen company-specific issues, and invest only in companies that meet demanding business and valuation criteria.
- Think like owners and operators by holding stakes in businesses over many years in order to compound wealth and reduce transaction costs.