Dean Chase Global Value, LLC

DEAN CHASE PHILOSOPHY

Dean Chase employs a strict bottom-up, Graham & Dodd, and absolute-value approach to investing in businesses we understand, businesses within our circle of competence, and businesses we believe to be undervalued. Benjamin Graham is considered by many to be the forefather of value investing.

The foundations of the Dean Chase research process are margins of safety and intrinsic value. In The Intelligent Investor, to ‘distill the secret of sound investing into three words,’’ Graham introduced the concept of "margin of safety." Very simply, margin of safety protects long-term investors from substantial, permanent wealth erosion. You don’t try to buy a $100 stock for $95, but rather you give yourself a reasonable cushion. To quote Warren Buffet, “When you build a bridge, you insist it can carry 30,000 pounds, but you only drive 10,000 pound trucks across it. And that same principle works in investing.” Stocks are then purchased at a discount, or margin of safety, to their fair value. This fair value, also known as intrinsic value, can be defined as the price a rational buyer would pay for a business.

Dean Chase believes that the market is irrational and inefficient over the short-term with prices being set by the marginal buyer or seller, not the most rational. Stock prices may bear no relation to what the true worth of a business may be. That being said, discrepancies in the market can create significant value-based opportunities for an investor. To quote Benjamin Graham, “In reality the market knows nothing, being nothing more than the product of the collective action of thousands of buyers and sellers who themselves are not always motivated by investment fundamentals. Emotional investors and speculators inevitably lose money; investors who take advantage of Mr. Market's periodic irrationality have a good chance of enjoying long-term success.” The daily volatility of stock prices being down one day and up the next clearly illustrates the lack of market rationality and its’ obvious disregard for business fundamentals. History has shown time and time again that the market is motivated by fear and greed – which is exploited by a disciplined and patient long-term investor like Dean Chase.






DEAN CHASE PHILOSOPHY Dean Chase employs a strict bottom-up, Graham & Dodd, and absolute-value approach to investing in businesses we understand, businesses within our circle of competence, and businesses we believe to be undervalued. Benjamin Graham is considered by many to be the forefather of value investing. The foundations of the Dean Chase research process are margins of safety and intrinsic value. In The Intelligent Investor, to ‘distill the secret of sound investing into three words,’’ Graham introduced the concept of "margin of safety." Very simply, margin of safety protects long-term investors from substantial, permanent wealth erosion. You don’t try to buy a $100 stock for $95, but rather you give yourself a reasonable cushion. To quote Warren Buffet, “When you build a bridge, you insist it can carry 30,000 pounds, but you only drive 10,000 pound trucks across it. And that same principle works in investing.” Stocks are then purchased at a discount, or margin of safety, to their fair value. This fair value, also known as intrinsic value, can be defined as the price a rational buyer would pay for a business. Dean Chase believes that the market is irrational and inefficient over the short-term with prices being set by the marginal buyer or seller, not the most rational. Stock prices may bear no relation to what the true worth of a business may be. That being said, discrepancies in the market can create significant value-based opportunities for an investor. To quote Benjamin Graham, “In reality the market knows nothing, being nothing more than the product of the collective action of thousands of buyers and sellers who themselves are not always motivated by investment fundamentals. Emotional investors and speculators inevitably lose money; investors who take advantage of Mr. Market's periodic irrationality have a good chance of enjoying long-term success.” The daily volatility of stock prices being down one day and up the next clearly illustrates the lack of market rationality and its’ obvious disregard for business fundamentals. History has shown time and time again that the market is motivated by fear and greed – which is exploited by a disciplined and patient long-term investor like Dean Chase.