A few questions are central to our investment process.
Do barriers to entry exist?
Is management able to fully exploit the company’s competitive position?
Is the company conservatively financed?
Does the company’s valuation provide sufficient margin of safety using conservative assumptions?
These questions lead to four type of investment opportunities
High quality companies trading at cheap to fair valuations
Quality companies trading at cheap valuations
Profitable companies trading at deep value valuations
Our goal is to find investments that will double over 5 years. Our research does not look at quarters or even years but full industry cycles. We make recommendations expecting not to be able to sell the asset for 3-5 years.