The purpose of Leithner & Co. is to invest its assets in bonds, other businesses and cash deposits (“securities”) for its shareholders’ benefit.The Company adheres strictly to a businesslike, long-term, “value” approach to investing (see Investment Philosophy for a detailed description of this approach and a discussion of its comparative rarity in Australia). Leithner & Co. is a value investor in the manner practised by Benjamin Graham (widely recognised as the founder of modern securities analysis) and his colleagues Warren Buffett, Thomas Knapp and Walter Schloss.Graham-style value investors have several identifying characteristics:
they invest in particular businesses on the basis of their underlying value (which is assessed on the basis of operating history, present circumstances and cautious projection of future potential). They never invest on the basis of popularity with other investors, business commentators or other “experts”;
they buy only at prices which provide a significant “margin of safety”;
they strive to hold investments for the long-term (typically five years and often much longer); and at all times
they embrace logic and reject emotion, popularity, fashion and conventional wisdom as a basis for their decisions.