A concentrated portfolio of high quality businesses, bought at attractive valuations and held for the longer term to benefit from their strong underlying economic characteristics, will deliver superior risk-adjusted returns.
This philosophy confers a number of advantages:
Owning high quality businesses means investors gain access to resilient business models with competitive advantages
High quality businesses generate better outcomes, more free cash flow, and generally grow their intrinsic value over time
In the longer term, share prices follow fundamentals. We seek to own stocks long enough to benefit from strong fundamentals
The buy-and-hold approach allows us to be highly selective and patient in finding truly exceptional new investment ideas, while also minimising transaction costs