Philosophy

New West Investment Management, Inc. seeks to identify mispriced securities. When buying shares of a company we look for abnormally profitable businesses that have a sustainable advantage. We construct investment portfolios, using individual securities in most cases, to increase transparency and to decrease risk, fees and taxes.

Amongst the chaos in the world's investment markets, two types of philosophies dominate: speculation and investment. At New West we pride ourselves on being investors and understand that investing means owning an asset or a business or loaning funds to a business and other entity.

When selecting stocks to add to a portfolio, in most cases we are looking to own a slice of an abnormally profitable business at an attractive price that has sustainable growth opportunities. This provides a margin of safety against a permanent loss of capital. Although this concept is easy to understand, finding companies that meet all three criteria is usually a function of discovering an opportunity hidden in a problem with the company, industry or the stock market as a whole. That requires fighting off the urges of human psychology to invest in something that others can easily disparage. That can be a lonely endeavor.

Recognizing that bonds can also provide attractive risk adjusted returns, most portfolios have funds allocated to this asset class. Consideration is given to current and expected future interest rates, time until maturity and the uncertainty or risk of repayment over the complete term the instrument is to be held.

New West Investment Management Inc. is never paid a commission or other compensation to invest in a particular security. The investments that are held in client accounts may in some cases be owned, or have been owned, in our personal investment accounts. Nevertheless, our clients' interests are always placed ahead of the firm and/or its employees. While this is no guarantee of success, it aligns our financial well being with that of our clients.