AKRE CAPITAL MANAGEMENT’S “THREE-LEGGED STOOL” INVESTMENT APPROACH
We focus our capital in a select number of what we believe to be extraordinary businesses. These companies meet specific standards related to the business itself, the people who manage it, and the discipline they demonstrate when it comes to reinvesting free cash flow:
*Return on equity (ROE) measures the rate of return on the ownership interest (shareholders’ equity) of the common stock owners.
**Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.