It also means being patient enough to wait for a company's intrinsic value to bloom. Akre, for instance, managed to put together a portfolio that provided shareholders with 2.63% growth in 2002. But the seeds for that growth were sown several years earlier, he says.

"Our largest holdings have been in the portfolio since the day we started," he says. The fund's largest holding, Penn National Gaming Inc., a slot machine casino company, was originally bought at about $3 per share and the fund has since added shares, Akre says. The company's share price started the year at $14.75 and ended at $15.86.

The fund was attracted to the company when it was a small off-track betting company. It caught Akre's notice when its newest off-track betting location, built at a cost of $2.5 million, generated $2.2 million in operating income in its first 15 months of operation. The company is now the fourth-largest slot machine casino operator in the United States in a growing industry, Akre says.

The recession-proof nature of the business also has helped. He notes that the slot machine industry subsists on players who view slots as entertainment rather than gambling. "They typically take 40 to 60 bucks with them with the expectation that they will spend and lose it," he says. "The machines have a fairly regular return."

There was also another key that plays into many of the fund's stock selections: Penn National Gaming's CEO was, and still is, the company's largest shareholder. "He had skin in the game and acted as an owner," Akre says.

Beyond individual picks, he feels the fund has been successful by keeping its goals simple and not hemming itself in style-wise. He notes that during the fund's six-year history, it has been categorized by the rating services as a growth/value fund, a value fund, a core fund and, lately, as a growth fund.

"In the simplest terms, what we're looking for are businesses with a high return on owners' capital, run by people who have the interests of the shareholders in mind, and where there exists an opportunity to reinvest our excess profits back into the business," he says. "Then, on top of that, we don't want to pay very much for it."

The second-largest fund holding, insurance company Markel Corp., was also an original member of the fund's portfolio. Akre liked the fact that the company breaks even on every dollar of premium it takes in. By comparison, the average property casualty insurance company loses about eight cents on every premium dollar, Akre contends. The company also stands out in its industry by finishing most years with cash reserves that exceed dollars paid out in losses. Also, as with Penn National Gaming, Markel's top executives are major shareholders.

The company's shares started 2002 priced at $179.65 and ended the year at $205.50. "Both these companies have terrific people running the business who are large shareholders and treat shareholders fairly," Akre says. "Both are selling at multiples that are probably near half of what their growth rates are expected to be."

The Mairs & Power Growth Fund last year endured its first decline since 1987, but manager George A. Mairs III has reason to be satisfied. The fund finished down 8.1%, but that was in a large blend category that sustained average losses of 22.13%, according to Morningstar.