Click to watch George discuss Buy and Hold Strategy

Our active trading approach is a critical aspect of our long-term buy-and-hold strategy. We seek to opportunistically buy and sell positions over time.

Buy Discipline

Patience and conviction characterize our buy discipline. We take time to understand an investment before making a decision to purchase. Having determined an entry price, we are willing to wait for the stock to come to us. We typically build positions over time; when conditions warrant, we may move quickly.

Market volatility creates unique buying opportunities. Following a sell off, we may take advantage of depressed prices to initiate positions or add to existing positions. Historically, these opportunities have made an important contribution to portfolio returns.

Sell Discipline

When a stock appreciates to our target price, we review the investment to determine whether our target should be raised or the position liquidated. If a stock faces persistent selling pressure while its investment merits remain intact, we may use the opportunity to add to our position.

Our investment philosophy of identifying high quality businesses is an important component of our buy/sell discipline. Superior businesses grow over time; their intrinsic values rise accordingly. This discipline of owning exceptional companies dovetails with our long-term investment strategy and minimizes the need for portfolio turnover.

Trading

At Pacific Global, we do not utilize a separate trading department. Our portfolio managers control the entire trading process. They determine the price, timing, and commission of each trade. This approach provides the flexibility and opportunity to respond to changing market conditions.

We establish a target price for each stock, which is based on various methodologies including: relative valuation, discounted cash flow analysis, sum-of-the-parts framework, and liquidation value.

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Investing in securities involves risk of loss that clients should be prepared to bear. Click here for a description of specific risks related to our investment strategies.