Quality and a long-term horizon
We study businesses, their customers, competitive advantages and culture. Durable moats can include pricing power, switching costs, distribution, network effects, low costs and intangible assets. A long-term horizon allows business value and compounding to matter more than short-term price movements.
Valuation and deep research
Even a good business can be a poor investment at the wrong price. Intrinsic value work, reverse DCF thinking and peer comparisons help reveal market assumptions and the margin for error. Annual reports, presentations, transcripts and filings provide the evidence behind the model.
Management and temperament
Capital allocation, transparency, governance and minority-shareholder treatment are central to a thesis. We return to that thesis when prices move and reconsider it when the underlying facts change.