Nicholas Limited Edition, Inc. strives to increase the value of your investment over the long-term (“long-term growth”) by purchasing primarily small companies with capitalizations of less than $2 billion. The Fund’s manager looks for companies with ample financial resources that are positioned to take advantage of long-term trends in the United States. The goal is to find great companies early and hold them for the long-term.
Investment Policies & Considerations
The performance of smaller company stock funds is often influenced by their size. If the assets invested in a small-company fund grow too large the fund’s manager may be forced to invest in companies he or she would otherwise pass over, or take bigger positions in companies he or she favors.
Nicholas Limited Edition's management team believes that company selection is a key to providing superior returns over time. Our goal is to find companies that have the potential for outstanding earnings and sales growth over time, and are positioned to benefit from long-term economic and social trends. We search today’s small companies to find those that will become tomorrow’s big companies. Some of the factors we consider in assessing a company include:
- Strategic position within its industry
- Product development
- Quality of management
- Future potential
- Price-to-earnings ratios relative to growth rate and industry trends
It is our strong conviction that superior long-term results are achieved by minimizing capital losses in adverse markets. We do not attempt to forecast short-term market swings, but work to preserve gains and minimize losses using long-term, fundamental valuation techniques. Our portfolio turnover is moderate as our goal is to find, and hold, stock in great companies. However, if a stock is not meeting our expectations, or has become over-valued, we will sell it.
At Nicholas, our watchword is patience. We believe it is a key to superior long-term results.
The Fund invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility.
Mutual fund investing involves risk: loss of principal is possible.