Douglass Winthrop has a disciplined investment process that emphasizes value. Attractive companies are identified through proprietary fundamental research. Merits of selected opportunities are debated and determined by the firm's investment committee at regularly scheduled research meetings. Investment opportunities are evaluated further on the basis of quantitative criteria. Fundamental and quantitative criteria include:

Quality of the business model
Management track record
Level of inside ownership
Return on invested capital
Internal rate of return estimates
Growth in tangible book value
Earnings/cash flow quality and potential
Balance sheet strength
Corporate governance

After considerable research, we develop a commitment to a stock as a firm and add it to our coverage list. We construct client portfolios by purchasing those securities on our coverage list that possess the most attractive reward-to-risk characteristics in an effort to control risk and maximize appreciation potential.