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A consistent, sustainable investment process is vital to weathering all economic climates. Ourinvestment philosophy’s strength is based on an unwavering commitment to invesng in quality businesses based on the principles of value invesng. We believe long-term investment success depends on sound investment philosophy and a repeatable process. Several essenal conceptsinform our investment philosophy and form the foundaon upon which we confidently invest our clients’ assets:• Intrinsic Value: We believe a stock’s worth is best determined by the underlying business’s long-term economics, not by what others are willing to pay in the short-term. • Margin of Safety: We determine an investment’s margin of safety by combining the quality of the underlying company and the discount from a conservave appraisal of intrinsic value offered by the price.• Long-term Time Horizon: We focus on achieving the best possible safe compounding of capital over many years rather than managing short-term volality.INVESTMENT PHILOSOPHYWe believe our philosophy is a raonal and intelligent approach to invesng. We buy pieces of companies in which we have a good understanding at prices significantly below their fair value.• We approach invesng in publicly-traded companies on a long-term basis as if we werebuying the company outright and retaining current management.• Our goal is to provide superior long-term returns for investors while aempng to minimize risk. An Owner’s INVESTMENT MANUALST. JAMES INVESTMENT ADVISORS

WE ADHERE TO THREE PRIMARY PRINCIPALS: 1. View stock as real ownership in a business2. Let the market serve you3. Invest with a margin of safetyINVESTMENT EXECUTIONSelecng a sound investment philosophy is crical. However, execung the philosophy creates investment returns. Our success depends on our paence and discipline to only invest in situaons that meet our criteria.INVESTMENT CRITERIAWe search for quality companies by targeng exceponal business performance combined with endurance.Business Staying Power: We only focus on companies that have staying power. We look for durable compeve advantages, pricing power above costs, a paern of disciplined reinvestment, an easy to understand business and strong balance sheets.Honest, Intelligent Management Teams: We want to partner with honest, intelligent management teams thattreat shareholders as partners. Management with exceponal skill, integrity, and passion. Indifferent to Wall Street's short-term focus. Compensaon raonally determined.Margin of Safety: We then only invest when we can buy a piece of the business substanally less than it is worth.Sell Discipline: We will sell if a company’s fundamentals deteriorate below our minimum business standard orif a business’s market price exceeds our esmate of full value. We will sell if a company can be replaced by a beer investment that allows an upgrade to the porolio's quality and overall valuaon.In summary, we look for well-seasoned companies with strong market posions and sustainable compeve advantages, commied and experienced management teams, which create long-term value and provide aracve returns.ST. JAMES INVESTMENT ADVISORS2