Approach

  • We believe consistent earnings growth is the primary driver of intrinsic value and long-term stock appreciation. Accordingly, our efforts focus on identifying and then investing in a concentrated portfolio of companies that we believe are capable of delivering sustainable, above-average earnings growth.
  • We seek to invest in global businesses with exceptional earnings growth, driven by a sustainable competitive advantage, superior financial strength, proven management teams and powerful products or services. We hold the view that such exceptional companies not only have the potential to contribute outsized returns but are also inherently less risky. Their superior earnings’ stability and financial strength serves as a “margin of safety” that typically results in less volatility during declining markets.
  • Our process demands that we do not trade stocks, but rather consider businesses we like to purchase and hold them for the long run. We therefore mitigate risk via a thorough examination and understanding of each business we own.
  • Patience is necessary in the absence of obvious bargains, as entry price is a significant determinant of return.
  • As great ideas are often scarce, it can take a long time for the market to present truly compelling opportunities that coincide with our circle of competence. As a result, we are comfortable to hold cash until our patience is rewarded.
  • At any given time, the portfolio consists of twelve to eighteen company investments.