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Investment Approach – Four Categories |
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Great Business at a Decent Price |
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The majority of the portfolio will contain world
class businesses purchased for reasonable prices |
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These businesses have strong economic “moats”, a
durable competitive advantage, large ROE, little
debt and generate large amounts of free cash |
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Decent Business at a Great Price |
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These businesses provide an opportunity to purchase
at a value well below what the company is
realistically worth |
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Examples would include companies trading below NAV
or below net working capital, or for prices we deem
to be significantly below a private buyout price |
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Arbitrage |
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Announced deals, mergers and spinoffs can provide
excellent opportunities |
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This will be a small part of the portfolio but can
generate very good returns with very low risk |
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Special Situations |
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Purchases based on alternate considerations, but
always applying the same investment philosophy |
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Examples could include insider stock purchases, poor
market sentiment, accounting anomalies or companies
set to benefit from significant catalysts |
