Tom Russo: Value Investor Conference Transcript May 2006

Mr. Russo’s investment approach is focused on asmall number of industries in which companieshave historically proven to be able to generatesustainable amounts of net free cash flow. (Theseindustries typically have included food,beverage, tobacco and broadcasting/media.) Thisfairly narrow approach reflects his training anddiscipline at the Sequoia Fund in New York,where he worked from 1984 to 1988. Mr. Russotries to limit risk by not paying too large amultiple of a company’s net free cash flow inlight of prevailing interest rates. He attempts tobroaden this otherwise narrow universe byincluding companies with smaller marketcapitalizations and companies in similarindustries based abroad.

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