The market is a fascinating group think experiment. It makes rational people do all kind of irrational things. Understanding the psychology of the market allows it to be a provider, not your master.
I aim to invest in exceptional companies that can compound at high rates of return at bargain prices based on the fundamental valuation of net asset values and discounted cash flows. I try to limit the negative impact of my mistakes by requiring a “margin of safety” in every investment. Sometimes this provided by competitive edge and other times by a very strong asset base. I prefer businesses than generate significant cash flow for their owners rather than businesses that consume such cash flows for ongoing operations.
I strive to understand the businesses in which I buy fractional ownership. I see the stock market as a way of owning great businesses you can understand. Great businesses that compound capital over the long term.
Risk is always avoided, as defined by a permanent capital loss.
Currently I manage discretionary portfolios for HNW clients that are long term and understand the investment style, if that is of interest to you please get in touch.