A consistent investment process is key to long-term success in investment management. While a process should naturally evolve and improve over time, a simple, yet clear foundation will ensure that it is applied consistently through various market cycles. Our process seeks to identify a select number of good companies, that are well run, and that […]
2015 was a very tough year for value driven stock pickers all around the world, with many of the best investors with very long track records experiencing their toughest year, in relative terms, since the dot-com bubble. While Buffett, Klarman and others have battled to keep up, short-term focused investors have continued to seek gratification […]
Rolls Royce Revisited A few months ago we outlined our investment thesis on Rolls Royce. Last week the company provided a poor operational update and outlook and the share price fell sharply on the news. This note is a review of our thesis on Rolls Royce where we have continued to accumulate shares into market […]
Sporting analogies are often used to explain the complex world of investing. There have been recent articles highlighting how the Springboks might have fared were they listed on the stock market. With the World Cup over, I do think that there are a few key characteristics of the winning All Blacks that are also required […]
Most investors seek some form of margin of safety in the investments that they make and this can come in many forms. For some it will be paying a very low price for a low quality asset, whereas for others it will be paying a reasonable price for an asset of high quality. We use […]
Our core objective when managing client portfolios is to produce “above average returns at below avereage risk” over a full market cycle. Our expectation in managing client portfolios is in line with the profile outlined by Warren Buffett in his 1960 partnership letter: Our service and approach is client centric and we are of the […]
Investors have become conditioned to “buy the dip” in recent years. Every small set back in markets has been a buying opportunity, largely on the back of central bank support. Every time markets fall a central bank official, at the least, issues some soothing word store as sure nervous markets, and this week has been […]
Recent performance numbers by South African equity managers are being heavily influenced by exposure to the most cyclical part of the market, commodity or resource shares. Some managers have taken big bets on the sector and are suffering, whilst others continue to stay away. This note will explore how we see the risks and opportunities […]
‘Investment success doesn’t come from buying good things, but rather from buying things well.’ (Howard Marks, Chairman Oaktree Capital) This is a quote I have often referred to and it occupies a permanent position on the wall in our offices. While it may sound like common sense, it is very difficult to stick to a […]
After a long period of calm, global markets have been jolted by a small dose of uncertainty and volatility this week. Front pages have been dominated by the dramatic events in Greece in particular. Almost as dramatic have been some of the sharp movements in the Chinese stock market, where despite an interest rate cut, […]