How We Invest

A focused group of 20 to 25 companies picked the way an owner would. We’re obsessed with businesses; we’re not obsessed with the stock market.

Every company we buy has to pass 3 tests.

They are the same tests you would run if you were thinking about buying a business down the street.

1. Does it make real money?

Real profit, not a promise of future profit. We don’t buy into businesses that need a complicated story to make their numbers make sense. We want both profit and cash, at the same time, consistently.

2. Is the company growing their profits faster than the average company?

Solid management teams put money back into the business in ways that make it stronger over time. Not-so-solid ones spend it on things that sound good in a press release.

3. Is it built to last?

Something has to protect it from competitors. A brand people trust. A network that is hard to replicate. A product that is a pain to switch away from. Without that, the profit will not hold.

If a company passes all of these tests, it’s usually worth owning. If it doesn’t pass, we move on.

Why we hold for a long time

You wouldn’t shut down a whole department because one supplier raised prices. We don’t overhaul the portfolio because of one bad month in the market.

When we buy a company, we plan to own it for years, because that’s how compounding works. It’s also how good companies become great ones.

Trading costs money. Taxes cost money. Patience does not.

We watch the news, but we don’t react to it.

What Dock Street is (and isn’t)

We are an investment management firm. We pick companies for a living. That is the one job we are hired to do, and we believe we do it well.

We are not wealth managers, financial planners, robo-advisors, or salespeople. We are not a firm that does a little bit of everything.

If you are looking for a comprehensive financial plan, a portfolio spread across dozens of asset types, or a firm that manages everything under one roof, we’re probably not for you.

Who this is built for

Our clients are home service business owners, and most of them have never invested in the stock market before. They spent their lives building a business from the ground up, and they think about money the way real builders do.

  • They are not looking for steady and boring.
  • They are not trying to preserve what they have.
  • They are looking for growth, over time, handled by people who think the way they do.

If you are uncomfortable with day-to-day swings, we might not be right for you. If you want a portfolio you don’t need to look at regularly, that is what we build.

Ready to talk?

The first conversation is short. No pressure. We will tell you honestly whether we think we are a good fit for what you need.

Or keep reading:

  • The second engine: Why business owners need capital working outside the business
  • Our story: How Dock Street started and who we work with