Investment philosophy
We are value investors. We buy good businesses at a discount to what they're worth and hold them for the long term. We invest in two ways.
Private companies. We often own our private businesses outright. In these companies we take an active role — funding and leading large development projects, backing management, and helping shape long-term strategy. Full ownership lets us build patiently and reinvest for the long run, without a public market reacting to every step.
Public companies. In public markets we invest in the equities of businesses we understand and admire. We prefer to take large positions where we can, and we find that a strong relationship with management is essential to owning a company well. That involvement means we are sometimes called active investors, and on occasion we will join a board — but activism is not our aim. We buy great companies at sensible prices and hold them.
How we invest
We buy shares of high-quality public companies when they trade below our estimate of intrinsic value. Positions are concentrated and sized with conviction, and we hold for years rather than quarters.
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We acquire private businesses, often outright, and hold them for the long term. As owners we back management, provide capital for growth, and help set strategy — free from the pressure of quarterly markets.
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We invest in real estate and undertake large development projects. We build patiently and hold for the long run, treating land and buildings the way we treat any business — bought well and owned for years.
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Because we take large positions and build close relationships with management, we are sometimes called active investors, and on occasion we join a board. For us, involvement is a means to good ownership, not an end in itself.
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Reading list
A few books that shaped how we invest. Worth your time.
The foundation: price is what you pay, value is what you get, and margin of safety is everything.
The more rigorous companion — how to actually appraise a business from its numbers.
A value investor's case for patience, discipline, and risk aversion over chasing returns.
On second-level thinking and the difference between risk and volatility.
Mental models and multidisciplinary judgment from Buffett's partner.
The case for buying great businesses and holding them for the long run.
Buffett's shareholder letters, organized by theme — owning businesses, not renting stocks.
Where concentrated, contrarian opportunities hide in special situations.