We think that a coherent and consistent philosophical approach to investing is necessary to protect and earn reasonable returns on capital. The bedrock of our approach is that Midway does not distinguish between analyzing a business and analyzing a stock. The two are linked because the value of stock is simply the value of the business divided by the number of outstanding shares.

In The Intelligent Investor, Ben Graham remarked that investing will be successful to the extent it is business-like. If we were to name our philosophical approach we'd probably choose business-like investing. That is, we look at a stock as a legal interest in the net assets of a company. We think of ourselves as part owners of a business. The entirety of Midway's research process flows from this seemingly simple starting point.