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Investment Discipline

The Jensen Investment Philosophy
At Jensen Investment Management we believe in doing one thing and doing it very well. Since 1988, we have consistently adhered to the same time-proven, highly disciplined investment process.

A cohesive team approach provides important depth and stability in Jensen portfolio management. Our seasoned investment team, using only original research, analyzes each company as though we intended to purchase the entire company for the long term, rather than just its stock.

Jensen targets companies that we believe have achieved a long-term record of persistent strong business performance, maintain strong debt-to-capital ratios, demonstrate outstanding management and possess sustainable advantages over competitors.

We believe that a company's ability to sustain these characteristics results in increasing free cash flow well in excess of operating needs - an important indicator of a valuable long-term investment.

Companies are purchased only when their shares are priced at a substantial discount to what we believe is their intrinsic value, based on a proprietary formula that allows us to estimate the present value of future free cash flows.

Shares are sold when a company's performance falls below specific business standards, or when a fully priced security can be replaced with another that is significantly underpriced.

We believe strict adherence to our proprietary process can provide strong long-term growth and preserve capital while avoiding speculative risk.

To read more about our Process CLICK HERE