Buy a good business below a conservative estimate of value, then let time do the work.

We look for a small number of businesses we can understand, whose economics we expect to be stronger in a decade than they are today, and we buy them only when the price sits comfortably below a conservative estimate of what they are worth.

What we look for

Principles

• Concentration over coverage

  Eight or ten businesses understood properly, rather than fifty followed at a distance. We would rather know a few companies deeply enough to act with conviction when the price is right.

• The downside comes first

  Before asking what an investment could return, we ask how it could lose money permanently. Most ideas are declined on that question alone.

• Patience is the strategy

  Most of the work is reading and waiting. When nothing meets the standard we do nothing, and a year without a new purchase is an acceptable outcome rather than a failure.

• Written down, before and after

  Every holding begins with a written case: the thesis, the valuation and its assumptions, the risks, and what would prove us wrong. The memo is kept unchanged, so later decisions can be judged against what we actually thought.

Where the method comes from

The approach is rooted in the tradition of value investing developed by Warren Buffett and Charlie Munger, and carried forward by investors including Mohnish Pabrai and Guy Spier. These are investors we admire, study and continue to learn from.

We believe good investing benefits from studying those who have done it exceptionally well. Their thinking helps shape our principles and discipline, while every investment is assessed independently through our own research, judgement and valuation.