Our investment philosophy is simple, we believe that out sized investment returns for any stock are achieved when the market underestimates the long term growth potential of sales and earnings.
Our investment approach involves two steps: firstly finding companies who can grow over time and improve profitability and secondly, buying them at a good price. Utilising our detailed bottom-up fundamental approach, we hope to invest in such stocks and be well positioned when the market starts to appreciate the growth we have already seen.
We are happy to take a different view to the market – indeed we prefer to do so on those stocks we like as this means there is greater potential upside to performance and, in turn could lead to out performance of the benchmark.
Running a portfolio of around 25-35 stocks allows us to provide real focus on those investments which we think will drive exceptional returns for investors.
Our views are based on thorough analysis, and providing those views and analytical results are then vindicated, we hope to see significant long-term performance of the market.
BENEFITS OF EQUITY INVESTING
Equity investors purchase shares in the expectation that they will rise in value in the form of capital gains and/or generate capital dividends from the company.
Should an equity investment rise in value, the investor receives the monetary difference only through the sale of the held shares or if the company’s assets are liquidated and all its obligations are met.
The main benefit from equity investments is the possibility to increase the value of the principal amount invested. This comes in the form of capital gains and dividends.
An equity fund offers investors a diversified investment option for typically a minimum initial investment amount.
To diversify a portfolio manually to the same extent that equity funds are diversified would require much more capital investment. Another potential benefit is to increase investment through rights shares should the company wish to raise additional capital.
There is a widespread belief that investment in equities is for income investors only.
While periodic dividend payments do create an income source, if they are reinvested they become a powerful form of compound investment. This makes equity investment an attractive option for investors eager to continually grow their portfolio value and investment reach.
While equity investments that produce high yields lead to income growth, it is a misconception that investors should focus solely or predominantly on them. A forecast of high yield indicates a heightened level of risk. Higher risk levels may mean that the asset is more vulnerable to value loss. In some equity investment cases, this can result in lower dividend payments or a complete failure to pay dividends to shareholders.