market folly

Christopher Begg is out with East Coast Asset Management's Q2 letter and in it he tackles the intangible attributes that they feel lead to intelligent investment decisions.

Here's a few of the intangibles they've identified:

- Ability to be receptive
- A curious nature
- Desire to seek continuous improvement

Expanding on investment process, Begg writes,

"Freedom from answers is not indecisiveness, it is an awareness of the biases that lead to false convictions where one roots oneself into a position that is immovable.  We are not always right, and humility has taught us to treat every capital allocation decision we make with the assumption that we are unaware of some unknowable piece of information.  Even after we decide to make an investment, we set a course to discover what we missed."

The full letter is below.  For those less interested in process and investment approach, East Coast also lays out their investment thesis for an agricultural equipment manufacturer at the end of the letter:

East Coast's Q2 letter:




For more from this firm, head to East Coast on transformation investments.