BCV Asset Management Inc. focuses on long-term ownership of growing businesses with growing dividends because we believe that this approach is far more rewarding than trying to predict the short-term direction of the equity markets.
After an initial investment decision is made, we continuously monitor the companies in which we invest. If we do make a decision to sell a position in an a company in which we invest, we do so because the investment thesis no longer holds, the company is hindered by unfavourable regulatory or management changes, or the current market price is significantly higher than our estimate of the true value of the company. Occasionally, we sell a position because another compelling investment opportunity presents itself and we are need to raise cash to take advantage of that opportunity. In all of our investment decisions, we remain focused on our long-term plan and we do not deviate from it because of short-term market movements.
Returns come from the time in the investment, not from the timing of the investment.
We prefer to invest with a long-term horizon because we do not believe that it is possible to predict the direction of the markets over the short term. In fact, we believe that one of the biggest mistakes an investor can make is trying to time the market. While there is no absence of prognosticators that have successful bought at a market bottom or sold at a market top, there is little evidence that such a buyer went on to sell at a market top or that such a seller reinvested cash at a market bottom. Instead, we follow an approach of remaining invested and allowing the companies in which we invest to prosper over the long-term, through the inevitable bull and bear cycles of the market.