The market likes certainty. Change creates opportunity.
We identify change within high-quality businesses and actively manage positions to generate long-term returns.
Identify what is changing
Our search for prospective investments involves evaluating fundamental and structural changes.
Seek out superior capital allocators
The greatest quality we seek to uncover is a management team skilled at allocating capital — leading to company-specific value creation.
Invest in high-quality businesses
Investment attributes we desire include industry leadership, a sustainable business model, high returns, and limited balance sheet leverage.
Manage a concentrated portfolio with attention to risk
Our 15–20 best ideas are analyzed for probability of permanent loss of capital. Valuation is a key determinant of position sizing.
Lessons we've learned
Nervous energy is one of the greatest destroyers of wealth.
Complexity has a cost.
Investing is extremely difficult, timing is impossible.
Leverage shortens investing time horizons.
“The task is not so much to see what no one has yet seen; but to think what nobody has yet thought, about that which everybody sees.”