Our Approach: Patient, polished and humble.
(And we’re proud of it.)
What is the Lawson Kroeker philosophy?
Our philosophy reflects that of our founders, Frank Lawson and Ken Kroeker.
We are built upon integrity and independence. And we’re here to stay.
Lawson Kroeker Investment Management is in its third generation of ownership, and still operating on the same principles as those of our founders. This means we can choose to truly put our clients’ needs first, and that we have time to think about each strategy and decision. We would describe ourselves as patient, polished and humble.
From New York to Chicago to Florida, each of our Chartered Financial Analysts has worked in bigger urban areas for large-scale, national investment firms. They choose to bring this experience and these insights to our firm in Omaha, where decisions are made one at a time for the best interests of each individual and family. We can react to change and integrate technology at Lawson Kroeker at the same level as any large national name in the industry – but we’re independently owned and operated. We make our decisions based on high convictions rather than the moods of the market.
In fact, our Midwestern location sets us apart from the emotions and short-term views many big-name firms can fall into. This physical and psychological distance allows us to patiently and thoroughly inspect and select each investment as if we were going to buy the entire company. Our goal is to maximize long-term total return within a client’s risk parameters. Period.
We also understand that prudent investors want to minimize risk and protect their assets. What this means is that we adhere to specific investment criteria. When we invest, we don’t just review stocks. We evaluate businesses.
Patience is another 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 often is at odds with current stock market views and its emotional roller coaster ride. We believe that following the crowd is not a sound plan for achieving financial success.
If we are contrarian, well … we like it that way. We think you will, too.
The Lawson Kroeker Investment Process:
- First, identify distinct companies that meet our investment criteria and are undervalued.
- Thoroughly analyze every aspect of the company, its industry and competition.
- Confirm investment ideas through a collaborative effort of the investment team.
- Select the companies we believe appear to offer the best potential return for the risk undertaken.
Investment Criteria: Built to Follow a Precise Process
- At the center of our research is a repeatable pattern that guides us as we invest for lasting value. We seek consistent high-quality company stocks, and 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.
Get to know our team, and you’ll see how we put these practices into action. You’ll also see that our philosophy, ultimately, is built around doing what’s in the best interests of our clients.