We believe price does not necessarily reflect value
Our investment philosophy is based on the belief that the price at which an asset trades is often not a true reflection of its long-term value. This is because market participants often become either too optimistic or too pessimistic about the asset’s prospects, and act on their fear or greed. This causes the asset to be over- or undervalued.
Undervalued investments offer the potential of favourable long-term opportunities
This mispricing enables us to exploit opportunities to achieve superior long-term returns. We are attracted to high-quality assets that are out of favour with most of the market – and therefore undervalued – and avoid popular assets that may be overvalued. By applying our disciplined investment process and not allowing emotion to influence our decisions, we are able to determine the true value of an asset and identify underpriced assets with promising growth prospects.
Our philosophy in practice
- We buy assets when they are trading at a price that is lower than their intrinsic value by a certain margin
- We sell once the price starts exceeding the asset’s true value
- The margin of safety provides protection against short-term price movements
How we think about investing
What this means for your investments
We apply a disciplined investment process and do not allow emotion to influence our decisions.
You have peace of mind that your money is invested in shares and other instruments based on in-depth research about their true long-term economic value and not just temporary market price movements, which are very unpredictable.
We buy assets when they are trading at a price that is lower than their intrinsic value.
Since we aim to only buy investments when their prices are low, the scope for the price to rise is much larger than the scope for the price to decline. This reduces the risk of long-term capital loss.
We are attracted to high-quality assets that are out of favour with most of the market.
When investing in shares, we only buy shares of high-quality businesses at low prices. This improves the chance of earning significant profits once the market realises the true value of the business over time.
We sell once the price starts exceeding the asset’s true value.
As long-term investors, we patiently wait for the right time to sell, so that we maximise the growth on your money.
It is important that you therefore have an appropriately long time horizon when you invest with us to benefit from our approach.