Investment Criteria

We believe companies that possess the following business attributes, management attributes, and financial attributes are well positioned to create value for shareholders through varying economic and market environments.

Business Attributes

  • Essential products and services
  • Loyal customers
  • Leadership in an attractive market niche or industry
  • Sustainable competitive advantages

Management Attributes

  • Strong operators with integrity
  • Favorable capital allocations
  • Meaningful share ownership

Financial Attributes

  • Strong balance sheet and free cash flow
  • High returns on capital
  • Purchasing such businesses when they are trading at discount to Intrinsic Value Intrinsic Value BBH's estimate of the present value of the cash that a business can generate and distribute to shareholders over its remaining life. See more definitions and with a meaningful Margin of Safety Margin of Safety With respect to equity investments, a margin of safety exists when we believe there is a significant discount to intrinsic value at the time of purchase, we aim to purchase at 75% of our estimate to intrinsic value or less. See more definitions reduces the likelihood of permanent capital loss on any single investment.