Investment Philosophy

Our aim is to achieve superior medium to long term out performance. We invest in high quality companies which we believe have good prospects for growth and are selling at attractive prices.

We look for companies which possess a durable competitive advantage and can generate high returns on capital. Other important characteristics we look for include capable management, strong free cash flow generation and financial strength. We combine research from the major brokerage houses with our own first-hand research to identify and assess investment opportunities. Company visits and management contact are an important part of this investment process.

We believe patience and discipline are important qualities for an investor. There is no hesitation to hold cash unless we can identify investment opportunities that meet our criteria for both quality and value. We are comfortable to hold investments through volatile periods as long as the underlying fundamentals of the company remain intact. As we limit our investments to the best ideas, portfolios tend to be fairly concentrated in nature.

6 Key Rules:

1. Understand: Understand the business you are purchasing and invest as if you were buying the business privately
2. Hard Work: Monitor changes in the businesses you own and work hard to find more businesses to buy
   
3. Be Patient: Patience is required when making investment decisions
   
4. Don’t Forecast: Knowing that you cannot forecast markets, interest rates, currencies etc. is a valuable investment tool
   
5. Have Conviction: When work is done and price is right invest with conviction
   
6. Don’t Speculate: There is a big difference between speculating on short term price movements and investing