His track record as a Portfolio Manager nears fifteen percent per annum over the past thirty years. His methods resemble those of Benjamin Graham, Warren Buffett, and Charlie Munger. He used terms such as Margin of Safety, Buy the stock as if you were going to hold it forever, buy the company not just the stock, etc.
His funds focus on small caps. But he did not start out with that intention. When he began investing, there was no distinction among stocks between small cap and large cap. He admits small caps bear higher volatility than large caps. He focuses first on the risk and then the return decision can be made. Risks include the leverage of the company, the management, the strategy of the business, and the ways he can lose money as an investor. After those matters are addressed without concern, then the potential for making money, and large amounts of it, become permitted to be considered. And total return is what is important, not relative return. That meant the company's ability to generate profit for the shareholders, the total return, is what is desired. Relative return, that is, versus some index such as the Russell 2000, is nice too, but not the end goal.
Charles Royce recommends the importance of dividends in the current investment era. They serve as a form of governance over a company's management. If a company develops an over-reaching husbandry of the company's cash, it is a concern, because that cash belongs to the company's owners, the shareholders.
When asked by Consuelo Mack of Wealthtrack what investment, other than the ones provided by the Guest, everyone should consider owning, Charles answered "to own a pool of quality dividend paying stocks".
I was encouraged by the advice.