Return on invested capital, earnings power, and cash flow drive the intrinsic value of a company.Beyond the Numbers: Successful long-term investing resides in knowing and understanding the qualitative differentiators: Stalwart Management: skilled and honest management teams drive value through strategy execution, effective capital allocation and proper shareowner alignment. Competitive Advantage: companies with sustainable business models and economic moats.
- Invest in companies capable of generating internal growth regardless of the economic environment.
Own high-quality companies for long time periods, creating significant value through the compounding of capital.
Focused:Portfolios should be focused in companies (25 - 35) with the best risk-adjusted return potential.