Investment Philosophy

GUIDING PRINCIPLES

We invest as a business owner and hold our best companies for the long term.

GUIDING PRINCIPLES

Our strategy involves detailed analysis of the strengths of individual companies, with much less emphasis on short-term market factors. Far greater importance is placed upon an assessment of a company’s balance sheet, cash flow characteristics, profitability, industry position, special strengths, future growth potential and management ability.

We do not try to time the market. Instead, we only buy stock when it is under value. The more discount Mr.market offers, the more we are going to take advantage of the opportunities. Likewise, we sell when we find the price gets close to its intrinsic value.

Investment Process

Find the great companies

Choosing the great companies that will exist well for the next 10 year. The great companies should have pricing power, strong balance sheet, and competitive advantage

Have the endurance to navigator through the financial crisis by investing long term health of the companies or acquisition

Understand the companies

Read annual reports and research industries information to formulate a company’s value based on our business analysis and financial analysis.

Know what is the companies’ value and way to continuously deliver long term value.What type of risks the companies are facing and how much it could be affected

Build and maintain a concentrated portfolio

Build a 10 to 15 companies and concentrated portfolio. Maintain the portfolio through quarterly update companies’ financial model.

Invest more in one of our top 10 holding is better than buying the 20th companies. Rebalance the portfolio based on how rich the current market to the intrinsic value.

The closer the company to the intrinsic value, the less weighting in the portfolio. The more discount the company to the intrinsic value, the more weighting in the portfolio.