Investment Strategy

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My personal investment objective is to preserve and grow the real value of my invested capital over the long term. I seek to avoid sectors considered incompatible with responsible investing, such as alcohol, gambling, and the arms industry. 

At the heart of the process is the conviction that inefficiencies exist in the valuation of exceptional companies, the power of compounding and the existence of exceptional management teams with superior capital allocation practices. Specifically, durable, cash generative, high margin businesses with deep/wide moats are rare and undervalued by most investors for most of the time. This has driven the concentrated nature of the portfolio typically holding 5-20 stocks. I seek to hold investments for the long term and reluctant to sell except where (1) the investment thesis/story has changed (2) I find a materially better investment elsewhere and reallocate capital (3) I have made a mistake/error in the original investment and hence reduce or exit the position entirely. Outside of these three scenarios it is very rare I sell. In the case that I find few investments opportunities due to high valuations or other purposes; I will hold cash and remain disciplined until such a time occurs. Periods of market volatility can provide, in my view, exceptional opportunities.

Peter Lynch - “The single most important thing is to know what you own. There’s a company behind every stock, if a company does well, the stock does well, it’s not that complicated”.