Focused on low priced (P/E ratio), unpopular and favorable priced (P/B ratio) companies run by smart and reliable managers. Keep it simple and break it down to the core. But how can you find these companies?
By selecting and understanding their business, their risks and opportunities, their financial statements and their management team.
How is the investment fund going to be different from all the other funds out there?
First we preselect the companies by putting their earnings and book value in relation to their current price, so we don´t pay to much for our stake.
Second we sniffle through their annual reports to see whether there are funerals in their statements. Plausible their strategy by comparing it with our expected future environment to evaluate its soundness and riskiness.
Third we check their management regarding their skills. That’s a point which is fairly hard to quantify that´s true – here we will rely on the management track record, qualifications and the shareholder letter to assess the manager´s skill.