Focused Research / Concentrated Portfolios / Risk-Averse Philosophy / Long-Term View
GoodHaven Capital Management is a registered investment advisor that manages investment portfolios for individuals, corporations, ERISA accounts, qualified institutions, and the GoodHaven Fund, a public, no-load mutual fund.* Co-managed by Larry Pitkowsky and Keith Trauner, we are value investors who invest for ourselves as we invest for our clients and shareholders.
*The GoodHaven Fund is offered only by prospectus. Nothing herein is intended as an offer or solicitation to purchase or sell any security.
Focused research is a process. We try to understand the nature and value of a business, not just its price. Our research starts at the bottom and we just keep digging deeper, talking to customers, suppliers, competitors and anyone else that can share insights into the intrinsic value of a company.
Concentrating portfolios means prudently having more of your money in your best ideas - the best combination of business fundamentals, management, and discounts to intrinsic value. Why put more money into your fiftieth best idea if you can put more into your top five?
Figure out where an investment can kill you and then don't go there. We never want to be carried off the field due to an imprudent or speculative investment. This means understanding the difference between risk - the chance that you can permanently lose money, and volatility - which is the bouncing around of security prices. We don't mind volatility, but we try hard to avoid permanent loss.
The time-frame of the average investor is now milliseconds. An explosion of media outlets and Internet resources ensure that the smallest price squiggles are the subject of breathless discussion. In our view, a long-term investment outlook is both desirable and a competitive advantage. In effect, we are not in the get rich quick business; we are in the get rich slow business by trying to compound our money over time at reasonable and competitive rates. Albert Einstein, the great physicist and mathematician, was fond of saying that compound interest is the eighth wonder of the world. ( for an illustration of compound growth.)
The “Our Approach” page of this website describes our general investment philosophy. For more specific information about how we manage separate accounts, please navigate to the “Links” tab of our website and download our most recent Form ADV Brochure.