Long term investments in high quality businesses, at a reasonable price.
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.
We invest in people, not businesses.
We prioritize businesses with strong competitive advantages and exceptional management teams.
Long term investments in high quality businesses, at a reasonable price.
Our commitment is to hold investments for the long haul, maximizing value over time.
Long-Term investments, backed by rigorous fundamental research
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.