Our experience prior to launching the firm played a huge role in the decision to focus on deep-value opportunities.
We have both built and grown businesses from scratch (bootstrapped) and our most recent experience is in business acquisitions via the private market (M&A).
When buying smaller businesses privately there is only one thing that matters:
Will the business generate enough future cashflow to pay back the purchase price and return a satisfactory profit on the original investment?
The longer it takes to recoup the purchase price, the higher the risk of losing money overall.
This focuses the mind on the purchase price and value of the business like nothing else, and we bring this same mental framework when looking for stocks to purchase.
We search for stocks in the same way that we previously searched for private businesses to buy whole.
We're looking for healthy, cash-rich, cash-flowing businesses that have been established for decades. We only buy them when the purchase price eliminates almost all risk from the transaction.
The private market contains plenty of established businesses with consistent cash-flows, but they are all priced by their owners, which means that none of them ever sell at a very low-risk price.
In the stock market, it's not the owner setting the price. Instead, its a disconnected auction-like process.
This naturally leads to healthy businesses becoming ridiculously mispriced, temporarily. Our job is to find these and then recycle our capital into them, over and over again.
To help you understand our philosophy and investment process in more detail, we publish case-studies for every stock that we exit.
We decided to focus exclusively on our deep-value investment approach because it's much simpler to execute via the stock market versus private markets.
We view our portfolio as a business-dealership.
We enjoy the process of searching for healthy businesses, buying them at low-risk prices and reselling back to the market when a fair price is offered.
We're also attracted to the scalability of the approach.
Flipping cheap stocks works incredibly well on a smaller capital base, but as capital grows it can easily transition to activist investing and eventually, buying and holding whole businesses forever.
We view the firm as a way to continue doing what we have always done, in a much more efficient and scalable manner.
We view ourselves as businesspeople rather than 'investors' and follow that framework in every aspect of the process.
Follow Our Performance.
Subscribe to receive free monthly updates on our performance and progress.
Contact: Info@dvcapitalpartners.com
@2025. Deep-Value Capital Management LLC