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.

Thomas O. Putnam founded Fenimore in 1974 with two passions: conduct in-depth, firsthand, independent investment research and serve investors with excellence and integrity. Today Fenimore Asset Management, manager of the FAM Funds, is nationally recognized, yet locally rooted and independently owned. Decades have passed, but our approach endures.

Securities offered through Fenimore Securities, Inc. Member FINRA/SIPC,
and advisory services offered through Fenimore Asset Management, Inc.

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