Welcome
Sire Line Capital Management LLC is a registered investment adviser based in Texas. Sire Line Capital provides investment management services for all types of investors. The firm was founded in 2009 by Daren Taylor, who serves as CEO and CIO.
We are value investors. Our definition of value investing is rooted in the belief that there is no fundamental difference between buying a business outright and buying shares in a business. When valuing a business, we put more focus on the most tangible and reliable information (the balance sheet, underlying cash earnings power and free cash flow), and less focus on the least reliable information (uncertain future growth). We pay particular attention to how growth-related capital is being accounted for and how it impacts a company's reported GAAP earnings.
When searching for suitable investments for our clients, Sire Line Capital looks for high-quality, predictable businesses that:
1) are simple to understand
2) have a consistent operating history and favorable long-term prospects
3) are managed by competent and honest managers whose interests are aligned with ours
4) can be purchased at a significant discount to intrinsic value.
When searching for suitable investments for our clients, we are ultimately seeking investments that possess the rare combination of predictable, bond-like cash flows and attractive, equity-like returns.
We are value investors. Our definition of value investing is rooted in the belief that there is no fundamental difference between buying a business outright and buying shares in a business. When valuing a business, we put more focus on the most tangible and reliable information (the balance sheet, underlying cash earnings power and free cash flow), and less focus on the least reliable information (uncertain future growth). We pay particular attention to how growth-related capital is being accounted for and how it impacts a company's reported GAAP earnings.
When searching for suitable investments for our clients, Sire Line Capital looks for high-quality, predictable businesses that:
1) are simple to understand
2) have a consistent operating history and favorable long-term prospects
3) are managed by competent and honest managers whose interests are aligned with ours
4) can be purchased at a significant discount to intrinsic value.
When searching for suitable investments for our clients, we are ultimately seeking investments that possess the rare combination of predictable, bond-like cash flows and attractive, equity-like returns.
Price vs. Value
At Sire Line Capital, we spend a great deal of our time analyzing the "margin of safety" between a company's stock price and its underlying intrinsic value. Philip Fisher, a great teacher and investor, appropriately said, "The stock market is filled with individuals who know the price of everything, but the value of nothing." Being able to understand the concept that price is what you pay and value is what you get is critical to successful investing.
A company's underlying economic value is distinct from its quoted market price. The quoted price of a company's stock can be found daily on a stock exchange or on the Internet. The underlying economic value of a company, however, is not so easily found. It must be carefully calculated. The true value of a company is determined by the net cash flows expected to occur over the life of the business discounted at an appropriate interest rate. At times, a company's stock price and its underlying intrinsic value are in agreement. However, most of the time they are not, as stock prices experience much more volatility than underlying economic values. Investors need to realize that a decline in a company's stock price does not always equate to a decline in its underlying economic value. Fear and greed in the stock market push and pull stock prices in the short term. Assets and the earnings they generate drive economic value over the long term.
A company's underlying economic value is distinct from its quoted market price. The quoted price of a company's stock can be found daily on a stock exchange or on the Internet. The underlying economic value of a company, however, is not so easily found. It must be carefully calculated. The true value of a company is determined by the net cash flows expected to occur over the life of the business discounted at an appropriate interest rate. At times, a company's stock price and its underlying intrinsic value are in agreement. However, most of the time they are not, as stock prices experience much more volatility than underlying economic values. Investors need to realize that a decline in a company's stock price does not always equate to a decline in its underlying economic value. Fear and greed in the stock market push and pull stock prices in the short term. Assets and the earnings they generate drive economic value over the long term.
