Every investment begins with the business itself, its fundamentals, quality, and long-term prospects, rather than short-term market sentiment or speculative trends. I focus on owning pieces of strong, well-managed companies at attractive valuations, understanding that the stock price ultimately reflects the performance of the underlying business.
Key Tenets of My Approach
Concentration over Diversification
I focus on a select set of high-conviction investments rather than spreading capital across numerous positions. By concentrating on the businesses I understand best, I aim to maximize compounding potential while maintaining deep engagement with the companies I own.
Quality First
I analyze businesses holistically, emphasizing long-term profitability, robust cash flows, and strong returns. My framework includes quantitative thresholds like high return on capital employed (ROCE > 30%), positive free cash flow, strong balance sheets (D/E < 1), and consistent profitability.
Equally important is qualitative assessment, evaluating management integrity, strategic vision, and competitive positioning.
Value with Growth Awareness
While quality is my priority, I invest opportunistically when valuation provides an attractive entry point. I look for great businesses priced below intrinsic value, often in situations overlooked or misunderstood by the broader market, guided by metrics like P/E ratios, PEG ratios, and historical performance patterns.
Long-Term Orientation
Patience is central to my philosophy. I invest with a multi-year horizon, allowing compounding to work its magic. Market volatility is seen as opportunity rather than risk, because true risk is the permanent loss of capital, not temporary price swings.
Data-Driven Independence
All my analysis is grounded in primary sources, primarily annual reports and company filings. I avoid brokerage notes and market hype, preferring to study the last ten years of reports from industry leaders to understand sector dynamics, historical trends, and management consistency.
Resilient and Contrarian Thinking
I embrace contrarian opportunities when the market misprices a fundamentally sound company. Low-beta, high-alpha positions reflect my preference for resilient businesses that perform under stress while offering asymmetric upside.
Simplicity and Discipline
I follow the mantra: "not smart, just not stupid." Complexity and speculation are avoided. My process is disciplined, formulaic yet flexible, relying on careful observation of business patterns and consistent quantitative checks.
In Practice
By integrating these principles, my fund aims to deliver high alpha with low market correlation, demonstrating that disciplined, concentrated, and business-focused investing can outperform benchmarks while managing risk.
The goal is long-term wealth creation for shareholders, built on patience, analytical rigor, and the conviction that understanding the business is the only true edge in investing.