We are long-term investors.
Focus on the long-term
To us, the appeal of an investment is driven by the long-term fundamentals of the company and its opportunity set, rather than short-term trading factors. We believe that this long-term mindset is increasingly valuable in today’s short-term oriented market.
Stay the course
Most investors have a bias toward action, though oftentimes the correct choice is to stay the course. We have believed in the virtues of low turnover for more than 35 years. And while a decision to stay the course isn’t always an easy one, we believe persistence helps performance more often than it hurts.
Look for good businesses
We look for companies with a sustainable competitive advantage and favor the durability of its business over its recent or near-term growth rate.
We concentrate in our best ideas.
Own your best ideas
We believe that outperforming the market requires concentrating in our best ideas, which means we limit the number of stocks in our portfolios. Why dilute a portfolio by owning 100 stocks, when we believe our top 25 – 40 will perform better?
Think independent of the index
Just because a sector is represented in an index doesn’t necessarily mean it’s a good investment. What we don’t own is just as important as what we do own.
Invest with conviction
Managers often avoid concentrating their portfolios because they don’t want their returns to deviate too much from the benchmark. But academic research shows successful long-term investors tend to have concentrated portfolios.
We stay fully invested.
Don’t attempt to time the market
Timing the market by using cash as a strategic asset is, in our opinion, too difficult a game to play because you have to be right not only on when to get out - which is hard enough given the natural upward drift in stock prices - but also when to get back in. Therefore we think our investors are better served by our staying fully invested at all times.
Invest without emotion
This protects our clients from succumbing to the natural urge to sell when conditions look the worst – which also happens to be when stock prices are at their lowest.
Manage risk through allocation
We manage risk not by increasing or decreasing the level of cash but by adjusting sector and security allocation based on prevailing conditions.
We are committed to being better investors today than we were yesterday. A key to good investing is not making the same mistakes over and over. We remain humble, continuously focused on improving our craft, and thankful for the opportunity to manage your money.
Oak Associates employees and their families maintain significant investments in the Oak Associates Funds; our interests are aligned with those of our fellow shareholders.
Our firm culture supports doing what’s best for clients: In an industry where portfolio managers may be pressured to achieve short-term results, Oak portfolio managers have the latitude to make decisions which maximize long-term returns. Superior long-term results inevitably come from patient, disciplined, and at times, unpopular, decisions.