GREENHAVEN ASSOCIATES INC

Greenhaven manages discrete investment portfolios for clients on a discretionary basis, primarily focusing on purchasing and holding undervalued common stocks. The underlying companies of the stocks they own might be of any size, in any type of business, or domiciled in any country. While they primarily own common stocks, they might purchase warrants, convertible or other debt securities, or other types of securities that might serve as a proxy for common stocks. In addition, if an account is less than fully invested in common stocks, they might purchase U.S. Treasury Bills or Notes, or other “cash equivalents”. Greenhaven has three “investment managers”: Ed Wachenheim, Chris Wachenheim, and Josh Sandbulte. Many of Greenhaven’s accounts are managed by a single manager and many are co-managed by Josh Sandbulte and Ed Wachenheim. In practice, Josh Sandbulte makes most of the daily decisions for the co-managed accounts, while Ed Wachenheim serves as the regulatory supervisor of the accounts and is available to make investment decisions at times when Josh Sandbulte is unavailable to make decisions. Each account is managed on a discretionary basis, meaning that Greenhaven’s managers make buy and sell decisions without the prior approval of clients.

Greenhaven's investment strategy centers on purchasing undervalued securities with the intention of selling them once they reach their full or overvalued potential. Their appraisal of a security's value typically looks two to four years into the future, a longer time horizon than many other investors. This allows them to identify and capitalize on opportunities where short-term performance may be unattractive, but long-term potential remains strong. By de-emphasizing short-term performance, Greenhaven believes they can access out-of-favor securities that are undervalued. This approach allows them to operate in a less competitive space, increasing the likelihood of finding profitable investments. They are willing to hold securities that other investors might shun due to short-term concerns, focusing instead on the long-term value and potential appreciation.

(Subscription Required)