HOW WE THINK
Our Investment Philosophy
Value investing, held patiently, decided independently. No committee, no benchmark, no rush.
01
Fundamentals first
Cash flow, balance sheet, return on capital. If the numbers do not hold up, the story does not matter. We get to know a company not from the income statement, but from where the cash comes from and where it goes.
We do not buy a business we cannot explain. If we cannot describe how a company makes money in a few sentences, we have not understood it, and we pass.
Cash flow and debt structure
Return on capital and where it is allocated
A business model we can explain
02
People we trust
We meet management and watch how they behave over several years. Honest operators make ordinary businesses good; the reverse is also true.
We prefer partners whose own money is still in the company. We look for commitment visible on the balance sheet, not commitment given in words.
Direct meetings with management
Observation over years
Companies whose owners are still in
03
Time on our side
Family capital has no redemption calendar. We report quarterly results to no one, so we can wait for a company to grow into its value.
Patience is a position. Doing nothing is often the best decision available that day, and we do not count that as a failing.
No redemption calendar
Holding measured in years
Waiting in cash is legitimate
04
Discipline: thresholds and price versus value
We have numerical thresholds. If return on equity (ROE) and return on invested capital (ROIC) do not sit clearly above the cost of capital over the long run, the company does not enter the portfolio, whatever its story.
We keep price and value apart. We read the accounts and work out what the business is worth ourselves; then we wait until the market price sits clearly below that number. The gap in between is our margin for error.
ROE and ROIC thresholds
Reading the accounts first-hand
Waiting until price falls below value
A written thesis, reread when we are wrong