One of the key lessons we learned in investing is that successful investing often involves a heavy focus on quality, which I don't think the investing community really appreciates. There is a lot of talk about growth or value, not as much talk about quality. We become stakeholders, not just stock traders, we are buying and keeping them in the long-term. With the funds that Derrick and I manage, the goal is to highlight this quality focus, as another value add to your growth metrics.

Invest in high quality firms that have sustainable advantages like brand, market leadership, best in class business models. High quality businesses tend to outperform their peers over the long-term and do so with less risk. We can capitalize on this and provide superior risk adjusted returns that are less risky. Some of the best investors out there have a similar philosophy: Warren Buffet and Charlie Munger. Both now are really quality investors. They have that same focus, that long-term orientation.

However, they don't really go into the small and mid-cap space, that is where Derrick and I see a lot of opportunity. The same kinds of investment processes and approaches around high quality franchises can be more effectively applied in the mid-cap arena.