At Cush Capital the research function is paramount. Research is dedicated to finding stocks with more upside than down – or “Asymmetric” risk profiles. These opportunities are rare. If they weren’t, investing would be easy! Accordingly, the hallmark of this strategy is patience and low turnover.

Company research includes analysis of SEC filings, trade publications, websites, newspapers, magazines, etc. As a second step, qualitative analysis includes conversations with management, customers, suppliers, competitors, and/or employees. In-depth research clarifies a company’s future cash flow and earnings which in turn determine the true (intrinsic) value of an investment. By finding stocks trading below their intrinsic value, investors satisfy a primary concern: margin of safety. Risk is not measured in terms of volatility, rather risk is measured as the likelihood of permanent loss of capital. Thus, a margin of safety is the most effective way to limit downside risk.

Risk is defined as the potential loss of capital and it guides the investment process: “The first rule of investing is don’t lose money, and the second rule is don’t forget rule #1” – Warren Buffett