Our Investment Philosophy

There are so many ways to make (and to loose) money in the stock-market.

 

Our way is to adhere to value approach. We’ve chosen not to focus on the “cigar-butt” style, but rather to concentrate on finding and understanding a quality business.

 

We believe that knowledge gained in the process could be reused in the process of making a new investment decision.

 

The margin of safety we’ll seek must be “qualitative” instead of “quantitative”.

 

The “quality” we after, should provided reasonable degree of certainty that the business will be around and thriving 10-20 years from now. We hope that compounding effect will play in our favor over that time. We understand that during that long time we can expect business to go through one or more business cycles. We can’t predict precisely any financial metric of that business 10 years from now and we don’t try to.

Somebody said that: “When a fat man walks down the street we don’t know exactly his weight, but we know he is fat.”

 

There are gobbles of money chasing “undervalued” investments that hope to quickly realize that value and dump it on yet a greater fool. Also, “Evident quality” is usually not cheap.

 

All said above, perhaps, is good in theory. What missing in our view is the precise specifics and concrete examples.

 

We learn here too, and we’ll share our views and ideas as soon as anything worthwhile emerges.

 

Thanks for your time and interest!