Our investment philosophy is designed to appeal to patient investors wishing to take advantage of ‘value’ opportunities across the capital markets globally. It incorporates the following characteristics:
- We see significant merit in explicit ‘value’ funds managed by specialist asset managers pursuing the time-honoured investment principles of Benjamin Graham.
- We also see significant merit in high quality individual listed businesses, with principled, capable, shareholder-friendly management, whose shares are trading well below a fair assessment of their intrinsic value.
- Although it can feel uncomfortable at times, we will often allocate capital to out-of-favour markets and to companies whose share prices are, for whatever reason, at least temporarily distressed.
- We regard the concept of ‘market efficiency’ as a largely academic fable concocted by economists with an impaired grasp of how the world really works.
- We favour investing in understandable economic sectors not prone to dramatic change, ideally with ‘wide moats’. And then in not overpaying to access them.
- We 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.
- We have no particular interest in ‘benchmarking’ or index-tracking.
- We 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 will ideally 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, or our bespoke managed account service, is unsuitable for you.