Smead Strategies

At Smead Capital Management, we are stock market investors. Our clients are individual investors, advisors, family offices and institutional investors globally who invest with the firm through its mutual funds, separate accounts and other investment vehicles. We advise clients that fear stock market failure through a low turnover, differentiated, value discipline seeking wonderful companies to build wealth.

Eight investment Criteria

Our portfolio managers evaluate and purchase stocks based on the following Eight Investment Criteria:

Required over the entire holding period

1. Meets an economic need
2. Strong competitive advantage (wide moats or barriers to entry)
3. Long history of profitability and strong operating metrics
4. Generates high levels of free cash flow 
5. Available at a low price in relation to intrinsic value

Favored, but not required

6. Management’s history of shareholder friendliness
7. Strong balance sheet
8. Strong insider ownership (preferably with recent purchases)

Every company we own must satisfy the required criteria. For companies that do not also meet the favored criteria, we believe these short-term conditions will be ultimately corrected or overwhelmed by the required criteria.  

Sell Criteria

Companies are sold if they deviate significantly from these criteria or if their stock price becomes unreasonable due to dramatic price appreciation in relation to underlying fundamentals. When a security falls 15-20% from our purchase price or relative to a peer group, the portfolio managers execute a formal, intensified review.

Investment Strategies

Capital Appreciation Strategy

Portfolio Managers

William Smead

Tony Scherrer, CFA

Cole Smead, CFA

Strategy Seeks long-term capital appreciation through concentrated positions; it will maintain approximately 25-30 companies in the portfolio. This portfolio invests in U.S. large capitalization companies through the ownership of common stock.
Investment Objective Long-term Capital Appreciation
Inception of Strategy 2008

Strategy Literature

Form CRS: Customer Relationship Summary

Smead Capital Management, Inc. (“SCM”) is an SEC registered investment adviser located in Seattle, Washington. Registered investment adviser does not imply a certain level of skill or training. SCM may only transact business in those states in which it is registered or has completed the appropriate notice-filing requirements. This website is limited to the dissemination of general information regarding SCM and SCM’s services and should not be used as the primary basis of investment decisions nor should it be construed as a solicitation or advice designed to meet the particular investment needs of any specific investor. Prospective clients should consult with a financial consultant to review their investment objectives and financial situation before determining whether any investment, security, or strategy is suitable. A copy of SCM’s Form ADV Part 2A providing information regarding SCM’s services, fees, and other important disclosure items is available is available on this website. Any opinions expressed on this site or in any SCM–authored documents are subject to change without notice and, due to the rapidly changing nature of the security markets, may quickly become outdated. No information should be interpreted to state or imply that past results are an indication of future performance. All materials presented are compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. No portion of the web site content should be interpreted as legal, accounting or tax advice. The email link on the Contact page does not generate an encrypted (secure) message. You may not link other websites to this website without the written permission of SCM. Unauthorized use of this site, or any of the material on this site without the permission of SCM, is prohibited.