Patience is a key element of our philosophy. Various research studies have shown that the average investor significantly under-performs the overall market because they let their emotions get in the way of rational decision making. They chase the latest fads with the typical result being that they miss the upswing and their gains are substantially less than what they would have been if they had just stayed the course.

While our style may lag the market in periods of “irrational exuberance,” we try to provide an extra measure of protection during bear markets. We hope to gain your trust so that you remain patient and confident even during difficult times.

Our investment style is often described as contrarian because it is a patient, disciplined, long-term approach that does not focus on the stock market and its emotional roller coaster ride. Wall Street’s short-term views do not sway our Main Street long-term goals. We believe that following the crowd is not a sound plan for achieving financial success.

• We conduct extensive independent research.
• We thoroughly analyze every aspect of the company, its industry and competition.
• Tax efficiency – our average stock holding period of four to five years
  helps to reduce capital gains.

Investment Criteria

In order to achieve our investors’ long-term goals, at the center of our research is a precise process we follow consistently – a repeatable pattern that guides us as we invest for lasting value. When we seek consistent high quality company stocks, we look for:

• Good businesses that we understand, have a competitive advantage and possess high profit margins.
• Companies that have little or no debt, free cash flow, and deploy capital wisely.
• Firms with superior management teams; leaders who are honest, ethical, energetic and have a strong track record of increasing the value of their organizations.
• Businesses we can buy at a discount to our estimate of value – what is known as margin of safety.

Sell Discipline

We sell a company’s stock when:

• The valuation is so high that the expected return falls below alternatives
• The valuation is well above long-term historical average multiples.
• The economics of the business are deteriorating.
• The investment is a mistake.

• We believe that preservation of capital is as important as growth of capital.
• While past performance is no guarantee of future results, we have a long history of investment management spanning both prosperous and difficult economic times.
• We have a long-term record of achieving admirable returns with low turnover.

  Contact us for historical performance info.

Our team is long-term and consistent with a total of more than 150 years of combined investment management experience and the entire portfolio management team are owners. In addition, our retirement plan is completely invested in the Lawson Kroeker Partnership. What this means to you is that your investment performance is tied to ours and vice versa — we are uniquely aligned.

Kenneth W. Kroeker, CFA

Kenneth W. Kroeker, CFA

With over 40 years of experience in investment management, Mr. Kroeker holds an M.A. (Finance) from the University of Nebraska and a B.A. (Education) from the University of Nebraska (at Kearney). Prior to founding Lawson Kroeker Investment Management in 1986, he was chairman of the Trust Investment Department of the Omaha National Bank (now U.S. Bancorp) for nine years. Mr. Kroeker is a current member and former president and director of The Omaha-Lincoln Society of Financial Analysts. —updated 4/12

ken@lawsonkroeker.com

Frank V. Lawson Jr., CFA

Frank V. Lawson Jr., CFA

With over 60 years of experience in investment management, Mr. Lawson holds a B.A. (Economics) from Harvard University. Prior to co-founding Lawson Kroeker Investment Management in 1986, he was the senior trust officer with First National Bank of Omaha for twenty years. Mr. Lawson is a current member and former president and director of the Omaha-Lincoln Society of Financial Analysts. He is also a member of the Midwest Professional Conduct Committee of the Financial Analysts Federation. Frank currently serves as Chairman Emeritus of the firm, providing valuable insights and observations about the firm’s investment strategies. —updated 4/12

frank@lawsonkroeker.com

Thomas J. Sudyka, Jr., CFA

Thomas J. Sudyka, Jr., CFA

With over 25 years of experience in investment management, Mr. Sudyka holds an M.B.A (Finance) from the University of Nebraska and a B.A. (Finance) from Creighton University. Prior to joining Lawson Kroeker Investment Management in 1999, he was a managing director and founding partner of BPI Global Asset Management. Prior to founding BPI, Mr. Sudyka was a portfolio manager with several large Midwest-based investment management companies. Mr. Sudyka is a member of The Omaha-Lincoln Society of Financial Analysts. —updated 4/12

tom@lawsonkroeker.com

Bruce H. Van Kooten, CFA

With over 35 years of experience in investment management, Mr. Van Kooten holds a B.A. (Economics and Finance) from Iowa State University. Prior to joining Lawson Kroeker Investment Management in 2006, he was a vice president and senior investment manager at Wells Fargo Private Client Services. Prior to joining Wells Fargo, Mr. Van Kooten was a portfolio manager and analyst with several Omaha-based investment management companies. Mr. Van Kooten is a member of the Omaha-Lincoln Society of Financial Analysts. —updated 4/12

bruce@lawsonkroeker.com