.png)
Investment Criteria
Our view is that good assets operating with a “Day 1” mentality tend to get better.
We focus on evaluating the company’s Business and Management and strive to only make purchases at what we believe to be attractive Prices.
Business
-
The company provides products or services that are highly valued by its clients, with that utility increasing over time.
-
The value proposition cannot be matched by competitors profitably.
-
This allows the business, in our view, to have superior economics that are defensible (i.e. a moat).
Management
-
Capable, honest, long-term oriented, and understands capital allocation.
-
Capital should be allocated to low risk, high return initiatives. If none are available, it should be returned to shareholders.
Price
-
Purchase price should offer an attractive return under conservative assumptions, but more importantly it should limit the probability of capital impairment.