The investment objective is to achieve capital appreciation through investment in a diversified portfolio of strong businesses, purchased when the respective price of the stock is reasonable.
The investment strategy is to restrict the choice of companies that fulfill the following criteria:
In addition, we look at the track record of the management in capital allocation decisions and governance issues, and the prospect of the company’s revenues and profits growing at a trajectory higher than industry’s average growth rate over the foreseeable future.
Such companies are purchased during times of temporary distress, or when the consensus in the market is that the earnings triggers are too distant in the future. Only under such conditions do we get the share of a good company at reasonable valuations.