Common stocks of publicly traded companies.

The auction-driven nature of the securities markets allows me to buy fractional ownership of outstanding businesses at large discounts from the prices they would command in negotiated transactions involving entire companies.

Unleveraged, long-only, focused, value investing.

Just as a private real estate investor looks to his properties to determine whether he made a sound investment, investors should look to the underlying business performance of their investees, not their daily stock price movements. Over time, stock price performance converges with business performance.

By investing in businesses that I understand, possessing strong competitive advantages, run by able people and at sensible prices.

There are no analysts and all investments are made and researched by Direk Khanijou.

Generally, I’m not interested in real estate based operations, oil and gas exploration, commodities, biotech, pharmaceuticals, gambling and capital-intensive heavy manufacturing.