Successful investing depends on a structured and systematic investment methodology, and the determination to execute it in a disciplined manner. Key to our investment philosophy is a humble and unemotional approach to the investment, and the patience to see our ideas flourish.
We maintain a clear focus on capital preservation, and target an absolute positive return over time. We invest in companies across different sectors, market capitalisations and countries regardless of any benchmark, and will hold cash where we feel it appropriate. As an active manager, our job is to take risk when we are adequately compensated, and minimise unnecessary risks. Minimising the risk of losing money is an important step in achieving an attractive long-term return.
We invest as owners in the companies we buy, with a focus on the sustainability and long-term development of the franchise. We do not see stocks as mere financial instruments, but a way to become part owner of a cash generating real asset. We like to buy high return on invested capital compounder businesses at attractive prices, but will invest in quality cyclical companies and restructuring cases as well.
Our investment philosophy focuses on known facts, rather than future expectations. This philosophy is based on the two pillars of value investing: Intrinsic Value (is this a business we would like to own) and Margin of Safety (is the stock cheap enough to buy).