Paradigm follows a value investment philosophy, meaning we look for high quality stocks trading at discounted valuations we believe do not reflect their true business values. Over time, we expect that the price will eventually rise to reflect that value. We maintain strict price discipline in our stock selection and believe that buying a security priced far below its business value reduces the risk of the investment and also allows for significant upside returns.
Paradigm emphasizes a patient, disciplined approach to investing and risk management. Great businesses can and often do get priced at a premium to the point that they can become poor investments. In contrast, good businesses can fall so far down in price that they become great investments. Being patient allows us to take advantage of these opportunities when the market misprices businesses.
We do not believe that short term market trends can be predicted consistently, so we focus on fundamental factors that will be key drivers of investment value over a longer term time horizon. We look for companies that have good management teams that run efficient operations and emphasize free cash flow generation, while growing business value through intelligent capital allocation.
As value investors we use a fundamental approach in our analysis. We look for companies that have strong balance sheets, growing free cash flow and competitive advantages. We like companies that pay dividends and have a history of increasing the payout as profits rise. While growth is another important factor to weigh in selecting an investment, we will not pay a premium in order to get it. We will purchase a growth stock only when our analysis shows it to be trading at a discount to our estimate of its intrinsic value.
Vice President / Portfolio Manager
John serves as vice president and as one of the firm’s portfolio managers. John’s primary focus is to help clients achieve their investment and financial goals. He works with clients to help design portfolios that generate income and achieve a desired return while working within the client’s risk tolerance profile.
Prior to joining Paradigm Capital, he spent time in the financial industry in research and analysis, operations and client services. John holds bachelor’s and master’s degrees in finance from the University of Nevada, Reno. John is involved in a number of civic and professional organizations in the community including the Reno Tahoe Young Professionals Network. In his free time, he enjoys golfing, running and spending time with his family.