Burger Wealth Management Firm Model An exercise to build a better business Timothy Burger

Core Beliefs “Investing is most intelligent when it is most business like” Buying shares of companies at a discount to the intrinsic value of the underlying business is the only way to invest, everything else is a brand of speculation Low investment expenses help investors make money over the long term Diversification reduces risk to a point, but the marginal benefit declines quickly. Owning more positions require you to have a greater portion of your portfolio in companies you know less about and have less conviction about. Fundamental analysis of investment opportunities should be the primary determinant of investment decisions. We can explain why we bought shares of a company, what the company does, who runs it, and how much we think the company is worth.

Portfolio Construction We are value investors, we don’t invest in “growth” stocks or do business with “growth” managers. Our intention is to build a portfolio based on estimates of fundamental values, not indexes. This may cause us to construct portfolios that generate very different returns from published indexes. It is our intention to generate high absolute returns over meaningful periods of time We may or may not “outperform” some index over some period of time, performance relative to an index over short periods of time is not important to us, generating meaningful returns over meaningful periods is our goal. We don’t know what earnings mean, we know what cash means. You can’t spend earnings, you can spend cash, guess which of the two we think is more important when evaluating a business. We don’t think markets are perfectly efficient, but believe that generally they are, that is what makes portfolio construction difficult and that is why we may not purchase shares on a regular basis, we buy when we see an opportunity for above average returns. We believe it is good to have a general idea regarding the appropriate asset allocation for your portfolio, but we believe individual investment decisions should not be held hostage by that asset allocation.

Key Restrictions Investment advisors are in business to make money for themselves, there is often a fundamental conflict between what is good for the client and what is good for the advisor in regards to fee structures. Investors with less than $100,000 have significantly reduced service options, generally investors with less than $1 million have some restrictions on services available to them.

Client Profile Smart people who we would like to be friends or professional colleagues with. By definition, partnering with a professional you trust, who you are willing to make a long term commitment to, makes you smart enough to do business with us. Must fundamentally believe that buying shares of good businesses run by smart, capable people at good prices is the proper way to build a portfolio, if you don’t believe that, please go find someone who believes whatever you do, this is not the right firm for you. Willing to be open and honest with us.

Client “Rights” Investors have the right to expect that investment professionals will always act in the best interests of the client. Investors have the right to expect that investment professionals will fully and honestly disclose all conflicts and service restrictions they place on client accounts for business reasons. Investors have the right to expect that investment professionals will only accept client business that is important enough and profitable enough for the professional that they will provide the client with an extremely high quality of service Clients have the right to receive adequate and comprehensive performance and strategy reporting from their advisor. Investors have the right to expect their advisor to get out of the way when the advisor isn’t the best most qualified professional to service the investor’s need.

Team Members, Qualifications, and Duties Partner – Responsible for running the firm, no required business activities Investments -- 80% investment ideas 20% business development and client services New Business / Sales – 60% sales, 20% investments, 20% client services Service 50% client service, 30% sales, 20% investments

Core Services

Porter’s 5 Forces

Competitive Advantages

Key Business Practices