Investment Strategy
My investment strategy is as simple as two-fold below:
- Buy decent businesses at sensible prices;
- Stay inactive.
I use my proprietary quantitative model to evaluate and uncover top-quality businesses globally. The model is a factor-based one, overweighting the following:
- Superior returns on capital;
- Strong free cash flow;
- Durable competitive advantage;
- Healthy balance sheet;
- Able management with shareholder-friendliness.
Although infrequently, I adjust and improve the model over time. Since its inception, a portfolio consisting of top picks from the model would have outperformed the market, and I expect this trend to continue. For those