We seek patient investors to take advantage of ‘value’ opportunities across stock markets globally.
- Investors must be open to the merits of explicit ‘value’ funds managed by specialist asset managers pursuing the time-honoured investment principles of Benjamin Graham.
- Investors must also be open to the merits of high quality individual listed businesses, with principled, capable, shareholder-friendly management, whose shares are trading well below a fair assessment of their intrinsic value.
- Investors must be comfortable allocating capital to out-of-favour markets and to companies whose share prices are, for whatever reason, at least temporarily distressed.
- Investors must regard the concept of ‘market efficiency’ as a largely academic fable concocted by economists with an impaired grasp of how the world really works.
- Investors must be interested in investing in understandable economic sectors not prone to dramatic change, ideally with ‘wide moats’. And then in not overpaying to access them.
- Investors must view the market price of a security as a temporary reflection of other people’s assessment of value, not necessarily as a fair reflection of its inherent underlying value.
- Investors must have no particular interest in ‘benchmarking’ or index-tracking.
- Investors must regard ‘risk’ not primarily as short-term price volatility, but rather as the likelihood of a permanent loss of capital, and which is clearly to be avoided at all cost.
- Investors must be comfortable having their money invested for a period of at least three years.
If any of these characteristics do not apply to you, you may find that an investment in the Price Value Portfolio is unsuitable for you.