Investment Philosophy
Our Stock Investment Philosophy
We become a partner in the companies
We have a long term time horizon
Our investment decision is
based on sound reasons
Others' mistakes are
opportunities for us
Risk is the possibility of
permanent loss of capital
We buy quality cheap
We do not put rotten
apples in the basket
If there is no opportunity, we keep liquidity
We become a partner in the companies
A stock purchased for investment purposes is not a piece of paper that will be sold to someone else that will soon give a higher price, it means being a partner to the company and getting a share of a certain economic value that the company will create in the long term.
It is the basis of our stock investment approach to buy the shares of companies that have simple and understandable business models, provide high capital returns with a low debt.
We have a long term time horizon
We believe that the investment process will be less troublesome and more profitable by focusing on the long term.
(i) We focus on choosing the right stock instead of trying to take advantage of short term market fluctuations
(ii) We focus on long term firm value and company operations
Our investment decision is based on sound reasons
Our investment decisions are based on careful and thorough research and evaluation of companies to invest in, not rumours and price charts. Our investment process is transparent, we do not invest in anything that can not be understood and explained.
Others' mistakes are opportunities for us
Market players often fail to act rationally and make emotional decisions. We believe it is necessary to adhere to predetermined investment principles in a disciplined manner.
Risk is the possibility of permanent loss of capital
We believe that risk should not be measured by short-term volatility in the share price. Our goal in risk management is to prevent permanent loss of capital.
We buy quality cheap
We make every investment by limiting the risk of loss, with an adequate margin of safety. The lower the price we buy the stock in compared to the company value we calculate (the higher the upside potential), and the higher the quality of the company’s business, ie the predictability of its future earnings, the more we reduce the investment risk.
We do not put rotten apples in the basket
While determining the portfolio weight of each of the securities, we pay attention to the fact that in the worst-case scenario, the possible loss amount is low compared to portfolio size.
If there is no opportunity, we keep liquidity
After investing in accordance with our investment criteria, we prefer to keep the remaining amount of our current portfolio in liquid instruments.
Our Stock Investment Philosophy
A stock purchased for investment purposes is not a piece of paper that will be sold to someone else that will soon give a higher price, it means being a partner to the company and getting a share of a certain economic value that the company will create in the long term.
It is the basis of our stock investment approach to buy the shares of companies that have simple and understandable business models, provide high capital returns with a low debt.
We believe that the investment process will be less troublesome and more profitable by focusing on the long term.
(i) We focus on choosing the right stock instead of trying to take advantage of short term market fluctuations
(ii) We focus on long term firm value and company operations
Our investment decisions are based on careful and thorough research and evaluation of companies to invest in, not rumours and price charts. Our investment process is transparent, we do not invest in anything that can not be understood and explained.
Market players often fail to act rationally and make emotional decisions. We believe it is necessary to adhere to predetermined investment principles in a disciplined manner.
We believe that risk should not be measured by short-term volatility in the share price. Our goal in risk management is to prevent permanent loss of capital.
We make every investment by limiting the risk of loss, with an adequate margin of safety. The lower the price we buy the stock in compared to the company value we calculate (the higher the upside potential), and the higher the quality of the company’s business, ie the predictability of its future earnings, the more we reduce the investment risk.
While determining the portfolio weight of each of the securities, we pay attention to the fact that in the worst-case scenario, the possible loss amount is low compared to portfolio size.
After investing in accordance with our investment criteria, we prefer to keep the remaining amount of our current portfolio in liquid instruments.
For investments in debt instruments
If we cannot find an attractive stock investment that meets our criteria, we use our remaining savings in debt instruments that promise attractive returns. This usually occurs when stock markets are overvalued. For comparison, we look at the return on investments in debt instruments after withholding tax.
We think it is more attractive to invest directly in corporate debt instruments than to lend money to a bank that collects deposits to lend to companies.
We investigate the balance sheet strength, past debt repayment performance and management quality of the company that issues the debt instrument. We stay away from companies that may be unable to repay their debt if the economic conditions or the business environment of the company deteriorate.
We try not to take maturity risk in an unstable interest environment. We prefer shorter term debt instruments rather than long term ones. In long-term debt instruments, we pay attention to the fact that the instrument is easily tradable in the secondary market.
For investments in
Debt instruments
If lending is more attractive
than being shareholder
We do not share
returns with banks
We lend money to
companies that can repay
We do not take maturity risk
If lending is more attractive
than being shareholder
If we cannot find an attractive stock investment that meets our criteria, we use our remaining savings in debt instruments that promise attractive returns. This usually occurs when stock markets are overvalued. For comparison, we look at the return on investments in debt instruments after withholding tax.
We do not share returns with banks
We think it is more attractive to invest directly in corporate debt instruments than to lend money to a bank that collects deposits to lend to companies.
We lend money to
companies that can repay
We investigate the balance sheet strength, past debt repayment performance and management quality of the company that issues the debt instrument. We stay away from companies that may be unable to repay their debt if the economic conditions or the business environment of the company deteriorate.
We do not take maturity risk
We try not to take maturity risk in an unstable interest environment. We prefer shorter term debt instruments rather than long term ones. In long-term debt instruments, we pay attention to the fact that the instrument is easily tradable in the secondary market.
