Our Investment Philosophy
We aim to build long-term wealth for our clients, while ensuring we are taking every step to preserve capital. Our value-based approach to investing, combined with a culture of patience and discipline, allows us to maintain a dual focus on preserving capital in the short them and growing wealth in the long term.
To achieve this, we maintain a substantial margin of safety when investing to minimize downside risk by only acting when we are confident that the securities we are purchasing are thoroughly researched and trading significantly below their intrinsic value. We seek out the right opportunities and only commit capital where there is evidence of asymmetric return profiles.
There are three steps that form the back bone of our meticulous process: business review, valuation, and risk management.
- Business review: We thoroughly review all aspects of the business to ensure we want to stay invested in it for five years or more. We also take it a step further and ask ourselves if, hypothetically, we’d be comfortable owning the entire business.
- Valuation: We use a variety of methods – DCF analysis, public company comparables, and private market valuations to calculate the intrinsic value of the business and determine if it is trading at a significant discount to its intrinsic value.
- Risk Management: We pay particular attention to ensure that we are not exposing the fund to any risk factor unnecessarily. Diversification across businesses and industries is critical in this regard.