Investment PROCESS
Process
Successful business owners look beyond the next few quarters, taking a long-term perspective on maximizing value within their businesses, while enhancing its sustainability and market position. This belief is at the core of our “Invest as Owners” process. Since 1992, we have averaged about 4 or 5 new ideas per year – a fraction of most active strategies and true to our heritage of long-term investors.
We believe profitability is the foundation for determining a businesses’ intrinsic value. As such, defensible, peer-leading profitability is a key element we look for when investing in companies. Sustained multi-cycle, profitability is a rare attribute that considerably narrows down our investible universe.
As growth investors, we expect our businesses to be able to deliver double-digit, annualized profitability growth over a multi-year time-frame. Meanwhile, our discipline with respect to valuation is exhibited in a static discount rate across an investment cycle.