INVESTMENT PHILOSOPHY
We prioritise the independence to manage capital according to our core principles:
I. INVESTING IN TOMORROW’S WORLD
We seek to invest in the best businesses in the context of the world economy of the future. Such businesses often have significant presence in Asia, and are in solid industries that benefit from economic, technological, demographic and social transitions that continue to shape the world. Our bias is towards investing in and partnering with companies that we regard as “Blue Chips of Tomorrow”.
II. CONCENTRATED INVESTING FOR THE LONG-TERM
We seek to invest like business owners. We focus capital on our best ideas through careful selection of businesses and limiting the number of investments. Our long-term approach enables us to invest effectively through industry cycles; business that are built to last devalue little from a year or two of turmoil, often gaining sustainable advantages instead. In our view, short-term uncertainties often create longer-term opportunities for the far-sighted and patient investor with holding power.
III. FUNDAMENTAL DISCIPLINE
We seek out value, preferably deep value, and quality at all times. We undertake intensive, focused and on-the-ground research for a deep understanding of the industries, countries and companies that we invest in. Downside risks are evaluated as much as upside potential, and capital preservation is paramount. We undertake independent and sensible analysis for superior understanding and conviction regardless of consensus opinion.
IV. INDEPENDENT AND ORIGINAL THINKING
Independent perspectives and thought leadership in the areas of relevance to our investments are core to our strategy. Many of the best investment opportunities may lie in quality companies that are under-researched or misunderstood, that are in transition and not well-suited to be valued by public markets or that require non-standard assessments of valuation and its future prospects.
V. PARTNERSHIP AND CO-INVESTMENT
We seek genuine long-term partnerships and relationships with investee companies and clients. We are focused on managing long-term capital and generally do not employ leverage in investing to enable us to capture long-term opportunities especially in time of pessimism or market dislocations, and to have superior holding power.
”... the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about ... It is a mistake to think that one limits one’s risk by spreading too much between enterprises about which one knows little and has no reason for special confidence ...”