How we differ
The investment strategy we follow – owning sensibly priced, high quality companies that can compound for many years – has been proven to work over the long run by Longview and many well-known investors.
We tilt the odds further in our clients’ favour by having:
- One portfolio: With only one investment portfolio, the Longview Portfolio, we are 100% focused on what all of our clients own.
- No emotion: We are committed to a rigorous, objective and repeatable investment process.
- High conviction investments: We limit the Longview Portfolio to 20 to 25 stocks at any one time.
- Investment flexibility: Although our strategy is tightly focused, we don’t limit ourselves by geography, industry or company size.
- Predictable investments: We have a preference for relatively predictable businesses and sectors, avoiding, for example, commodity producers.
- Alignment with clients: Everyone at Longview is invested in the Longview Portfolio alongside our clients, owning the same stocks in the same weightings.
We dislike tax.
We recognize that most of our clients live in an after-tax world. We are stingy about taxes and are dedicated to maximizing their after-tax returns:
- Capital gains: The Longview Portfolio has a relatively low turnover of holdings, to defer capital gains tax and maximize the impact of compounding capital on a before-tax basis.
- Dividends: For taxable clients, we allocate shares thoughtfully between tax-sheltered and taxable accounts, to minimize taxes on dividends.
- Tax-loss selling: We engage in the selective selling and buying back of stocks, in order to lock-in capital losses for taxable clients.
We take the trust placed in us by our clients very seriously. We are closely connected with them, building strong relationships. That means we take on no more clients than we can service well.
The people at Longview who manage client relationships are also members of our Investment Committee. We ensure that our clients speak directly with the people responsible for making our investment decisions.
We are nothing without our clients. We take a long term perspective to relationships and put our clients’ interest first in everything we do, always.