Value is the keystone of the Robotti investment selection process.
Robotti's research approach is through "classic" value investing as pioneered by Benjamin Graham. Robotti & Company maintains a long-term investment horizon in its securities selection. Inherent in their approach is the belief that market prices of securities do not necessarily indicate their true economic worth.
Robotti's analysts research and identify investments selling at significant discounts to their "intrinsic value." Through their research process Robotti seeks to identify companies that provide the opportunity for substantial capital appreciation while maintaining a significant "margin of safety."
Robotti's investment niche is small-to-mid capitalization equities of misunderstood, neglected and out-of-favor companies. The majority of the stocks they buy for clients are, or were, under-followed and under-researched by Wall Street. By looking at the companies that have minimal sponsorship, Robotti is able to uncover original and compelling investment ideas. While they do specialize in smaller companies, they also seek opportunities within our core competencies and will consider larger companies when appropriate.
Here is Robert Robotti in a comprehensive interview discussing his market-beating investing approach: