Our investment strategy starts by setting return objectives with a long-term outlook. We concentrate our efforts on a small number of holdings that exhibit specific traits consistent with advantaged business models.
Our investment strategy seeks superior returns by concentrating in advantaged businesses and holding them to compound business and market value for the long term. Targeting a 10%+ long-term compounded return. Seek to outperform the S&P 500 Index over the next decade.
ABOUT THE S&P 500
The S&P measures stock performance of 500 large companies listed on stock exchanges in the US. It is an average that communicates the general trend of the market. Our mission is to outperform that average over the long-term.
IN IT FOR THE LONG HAUL
Our benchmark goals are set in years — not months — into the future because we are investing in companies that we believe will be successful for a long time. We are not focused on temporary dips and spikes in the market, but a positive trajectory over time.
We look for companies with a long runway to compound business and market value over time. Seek to hold our investments for 5-10 years. Long term = Tax efficient
We focus our time, attention, and capital on our best ideas. We target 20-30 holdings with a maximum starting weighting of 5% for each holding.
A FOCUSED PORTFOLIO
We are constantly analyzing our existing portfolio and evaluating potential new companies that meet all of our investment criteria.
We invest in companies with advantaged business models and attributes including:
Attracting and retaining the best talent in the industry
Favorable secular trends
Recurring need for product or service
Scale or network effects
Simple and focused business model
Capacity to improve
Willingness to invest