The market likes certainty. Change creates opportunity.
We identify change within high-quality businesses and actively manage positions to generate long-term returns.
Our Process
Identify what is changing
Our search for prospective investments involves evaluating fundamental and structural changes.
Seek out superior capital allocators
The greatest quality we seek to uncover is a management team skilled at allocating capital — leading to company-specific value creation.
Invest in high-quality businesses
Investment attributes we desire include industry leadership, a sustainable business model, high returns, and limited balance sheet leverage.
Manage a concentrated portfolio with attention to risk
Our 15–20 best ideas are analyzed for probability of permanent loss of capital. Valuation is a key determinant of position sizing.
Lessons we've learned
01
Temperament
Nervous energy is one of the greatest destroyers of wealth.
02
Prudence
Complexity has a cost.
03
Timing
Investing is extremely difficult, timing is impossible.
04
Debt
Leverage shortens investing time horizons.
“The task is not so much to see what no one has yet seen; but to think what nobody has yet thought, about that which everybody sees.”
