Does The Jensen Portfolio hold enough stocks to spread investment risk?
We believe it does. We search for successful, well-managed businesses that are understandable, sustainable, care deeply about shareholder value and are available at sensible prices. These companies that have achieved outstanding business performance in each of the last 10 years, have financial strength and generally are less affected by market and economic cycles. They have sustainable competitive advantages, positioning them for leadership within their industries. The ability to maintain these characteristics over time results in increasing cash flow, well in excess of operating needs – a prime indicator of a valuable investment. We believe that these quality companies create value as profitable businesses that will, over time, provide attractive returns with less risk than the market.
