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Gamble Jones Capital Management’s Investment Triangle

As an active investment manager that invests in a select group of companies on behalf of our clients. We have a disciplined selection process which looks for companies with three important criteria: a differentiated business model, a proven management team, and an attractive valuation.

Investment Criteria
Differentiated Business Model

Ultimately we are investing in a stream of future earnings discounted to today’s dollars. As such, we want the highest confidence that earnings will continue to increase. Thus, we search for companies with competitive advantages, such as barriers to entry or switching costs which allow for pricing power. We prefer businesses that are not cyclical and not capital intensive. We seek companies with recurring revenue streams.

Proven Management Team

Proven Management Team: Our highest priority is to invest in companies with talented and ethical leaders who value our clients as shareholders. Thus, we are diligent in analyzing the management teams of companies we research to ensure they consistently act in a manner which protects and enhances shareholder value. We stress to our clients that through stock ownership, they actually own parts of real businesses.

Attractive Valuation

Attractive Valuation: Quite often we find companies which fit our first two criteria – they have differentiated business models and proven management teams. However, the last and most crucial GJCM criterion is valuation. We only invest in companies that are priced below our analysis of their intrinsic value and which have excellent opportunities for sustainable and increased growth. This discipline helps us avoid excellent but overpriced companies.

GJCM Investment

Differentiated Business Models, Proven Management, and Attractive Valuation are the three key criteria of the Gamble Jones Capital Management Investment Triangle.  Businesses which meet all three of our criteria are candidates for inclusion in the GJCM Investment Strategies.