We focus on very few companies. We try and know what you can know. We try and only buy a few companies which we believe have been built to last in all environments.
We look for businesses with attractive reinvestment opportunities, which has high returns on capital, and also has the economics of the business to be such that the company can compound earnings and cash flow and grow intrinsic value over time (compounding machine).
We are strong believer of “future return depends on what valuation you pay”. However, we are willing to pay a fair price for the compounder, as they will grow shareholder value steadily over time.