Investment Principles and Strategy
Fundamental, active, long-term investments in profitable companies whos business model is disrupting or creating an industry for the benefit of environment and people. The majority of our analysis is focused on the drivers of price and volume.
- Concentrated portfolio
- Screen all investment opportunities manually, looking at the business model as a first filter
- Detailed analysis of financials, notes to financials, industry, and competitors. (Company must have earning from operations or we must be able to clearly establish a likely pathway to profitability)
- Calculate intrinsic value based on tangible value in the business (value of advertising, R&D, balance sheet) and value of distributable earnings (cash flow from operations) (We can only purchase a company where the stock price represents a fair or discounted value as compared to our valuation).
- Detailed ESG analysis (Company must align with good ESG management practice).
- Accounting manipulation checks (check on any evidence of accounting manipulation or embellishment).
Our investors perceive us as sustainable. It is therefore our duty to to interpret what sustainability means and to enact it in our daily activities.