Investment Philosophy

I invest in high-quality businesses, run by high-quality people. I invest with an ownership-, not trader-mentality. I solely own businesses that I believe have wide-moated, durable, high ROIC business-models. The people running „my“ businesses are among the world’s greatest asset allocators. I acknowledge that the return on our investment will always be a direct function of the price we pay. 

1)     I primarily invest in people, not businesses. My unique access to key decision-makers makes me a more qualified investor to build confidence in a company’s long-term success and competitive edge. 

2)     I understand that time diminishes the value of mediocre companies but amplifies the value of exceptional ones. Accordingly, I will scrutinize ideas, that favor average businesses at exceptional prices over ideas that present an exceptional businesses at fair prices.

Investment Philosophy

 All my investments are backed by the belief that a company’s value is driven solely by long-term cash flow generation. I make long-only concentrated bets, backed by rigorous fundamental research. I don’t limit myself by industry or geography, only by mediocre management or business models with inherently unfavorable economics. I understand that true investment value emerges not from chasing short-term trends but from a deep, patient contemplation of a company’s fundamental strengths and potential.

 I prioritize investments based on their prospective value over the next two decades, rather than being influenced by fleeting economic data or market swings. I don’t consider myself smart enough to predict short-term market movements and believe this skill is restricted to very few ingenious individuals. I look beyond the noise of daily market fluctuations and concentrate on the intrinsic qualities that make my businesses fundamentally strong.

A key aspect of my strategy is an in-depth analysis of a company’s core identity. I ask crucial questions to executives and shareholders about where the company will stand in the next 10-20years and try to identify the challenges that threaten the durability of the business model. Resilient businesses with small, persistent improvements in their competitive advantages usually become compounding machines, driving outstanding shareholder value.

I give special attention to businesses led by founders or those with highly incentivized management. My relationship with 3G Capital taught me that when a company’s interests are properly aligned, it “runs on steroids”, consistently outperforming market expectations over the long run. 

I value businesses that pass on their scale benefits to customers through lower prices, as seen in companies like Costco and Amazon. While this approach may impact short-term profits, it often leads to greater long-term value and customer loyalty.