Our Philosophy.
We are long term investors. We invest in high quality, long-term durable, growing and phenomenally managed businesses. Ideally these are monopoly or oligopoly businesses supported by ‘network effects’, ‘scale-shared’ effects or very strong barriers to entry.
We identify as a ‘value-growth’ investor – buying high quality long term companies at a large discount to intrinsic valuation. We assess intrinsic value over the medium to long term.
We see this as a mix of Value fundamentals (Graham & Dodd, Buffett) with Growth (Fisher) and not-losing money (Marks) investment philosophies.
We find that software, technology, infrastructure, property, insurance and healthcare companies have characteristics that can best match this thesis and are thus core to our portfolio construction.
Process.
We undertake rigorous bottom-up and top-down analysis to identify quality businesses that will be materially stronger and more profitable in seven+ years’ time.
Our process involves thorough research on the company, its industry, its competitors, ‘scuttlebutt’ observations, its opportunity for next legs of growth, ability to re-invest in its business at high rates of return, its competitive and sustainable advantages and moats.
This philosophy and process results in a high-conviction long term core portfolio of businesses that has:
- predicable revenues and earnings;
- ability to invest significant amounts of capital in their business at high rates of return;
- high operating margins and free cashflow metrics over time;
- strong balance sheets; and durable competitive advantages.