Philosophy defines an investment organization.  Our philosophy is based on timeless human behavior, investors are emotional and overreact in the short run, driving share prices away from the company’s Fair Value.  Thus, stock prices change more dramatically than the underlying fundamentals of the company, which determine a stock's ultimate value.  It is that anomaly that we seek to exploit at Cornerstone.  Disciplined investors can take advantage of the emotion and volatility of the market by buying securities when the market is overly pessimistic and selling securities when the market is filled with optimism (see Stock Example below). Our valuation discipline enables us to focus attention on those companies that are trading at the deepest discount to Fair Value.  Ultimately, prices converge with Fair Values.  Our long-term approach to investing allows us to capitalize on this market inefficiency.