Investment security :

Quality, independence, personal approach

Our goal is to offer above standard services, putting emphasis on quality of products. Management of the company oversees all strategies and invests in them personally, thus aligning it’s interests with those of the clients.  We are rewarded by performance, what creates an incentive to deliver above-average results with strict risk control.

Long-term horizon

We invest, when it is most businesslike. Owning stock in a company brings the right to share profits, claim assets or vote on general meetings. We look for an experienced management team, ability to generate stable cash flow, dividend yields and a strong financial position, which will assure the long-term survival of the company and our investment. All these factors can be observed only from a several year perspective, as such, we do not pay attention to daily or monthly movements in stock prices. History has shown, that stocks are in the long-term the most profitable and productive investment.

Invest in what we understand

We pick companies, which have a simple business model, stable earnings and a transparent ownership structure. Our goal is to avoid speculative investments, derivatives or complex businesses.

We use short-term movements in stock prices for long-term purchases

Market prices of stocks fluctuate almost all the time, influenced by various speculative and fundamental factors. However, the intrinsic value of given companies stays many times unchanged, creating a discrepancy, which we are exploiting. Our goal is to estimate an approximate value of a company and it’s shares. When prices are significantly below our estimates, we believe it’s an attractive investment. Once prices rise above the calculated intrinsic values, we take profits and look for other opportunities.

We do not use broad diversification. Assets are concentrated into few well-researched investments

Above-average results can only be achieved with detailed analysis, which is effective only with a small amount of investments in a portfolio. It is impossible to analyze thoroughly a portfolio with hundreds of assets of different classes. Such an approach is in our opinion very risky.

Protection of Capital

Warren Buffet came up with two simple investing rules: 1. Never lose money 2. Never forget rule number 1. Investing in stocks carries a high degree of risk, which we partially limit by making intelligent purchases and holding cash. We deploy capital only if there are attractive opportunities, cash has an option value which is used particularly after sharp drops in stock prices.