How We Invest - Fenimore Asset Management

Your Trusted Investment Partner

INSIGHTS

IN-DEPTH RESEARCH.

INSIGHTFUL INVESTING.

Fenimore’s investment research team conducts independent, in-depth research and analyzes the companies behind the investments to gain insights. Fenimore uses this firsthand knowledge, and a

market-tested process, to help create value for our investors over the long term. We invest alongside you and our hope is that we become your trusted investment partner.

OUR INVESTMENT APPROACH

Fenimore is dedicated to identifying select, quality businesses that we believe can grow and produce attractive returns over time. This means conducting extensive due diligence on any business in which we may invest. Our fieldwork includes meeting with management, customers, and suppliers as well as on-site visits.

QUALITY MATTERS

We manage risk (which we define as permanent loss of capital — not market volatility) by adhering to our enduring process and only investing in what we deem to be quality businesses. We believe in-person research is still the best way to ensure we are investing in quality businesses that meet Fenimore’s four core criteria.

1

QUALITY BUSINESS

Understandable business models, growing cash profitability, and defensible competitive advantages.

2

STRONG FINANCIALS

Strong financials including significant free cash flow generation and low leverage.

3

PROVEN MANAGEMENT

Proven and ethical management who focus on creating value and astute capital allocation.

4

MARGIN OF SAFETY

A margin of safety, including balance sheet strength, long-term sustainable growth potential, and a discounted price based on our estimate of their intrinsic value.