Dane Capital has a patient, long-term oriented investment approach.
We seek stocks where others may not be looking, either because they are off the beaten path, or because they are potentially out of favor over the short-term.
At the core, our goal is to identify companies that have the potential to compound at above market rates, and invest in managements who are value-builders, and not just kingdom builders.
We value patience, persistence, and deep-dive research. It's our goal to be the expert in the stocks in our portfolio. Given our concentration, our portfolio may have periods of volatility, but it is our belief that focusing on our top ideas will generate out-performance over time.
Investing in small-cap or under-followed stocks may cause our results to vary from month-to-month or quarter-to-quarter, but we also believe many investors’ fear of underfollowed stocks create outsized opportunities for patient investors that have identified companies that are widely ignored and which creates the potential to produce outsized returns.
Dane frequently publishes detailed write-ups on its top stock ideas. Our firm does this because we believe it will:
- Elicit thoughtful feedback from other investors on our analyses — we are always open to and appreciate variant views, or additional information
- Inform like-minded investors about stocks that are underfollowed
- Provide credibility with management teams, which allows us to have meaningful, constructive engagement.
“Charlie and I operated mostly with 5 positions. If I were running 50, 100, 200 million, I would have 80% in 5 positions, with 25% for the largest. In 1964 I found a position I was willing to go heavier into, up to 40%. I told investors they could pull their money out. None did...There were various times I would have gone up to 75%, even in the past few years. If it’s your game and you really know your business, you can load up.”