Our approach to investing

"In terms of survival, it pays not to be brilliant at anything, but good at many things." AS

We have finally developed a method of approaching our investment style in a manner that is flexible, yet consistent, that attempts to kill instinct, yet explores freely.

We will approach investing by:

1. Using in great detail the financial numbers to come to an approx. numerical valuation (using various valuation methods)

2. Understanding the economics of the business in a numerical and non numerical manner

3. Combining a macro economic overlay to appreciate what macro stresses may exist and how they may affect a bottom up valaution

It may sound terribly simple, but connecting the three has denied me for many years. They are, in our mind, as close to being independent and mutually exclusive as we can get (for the moment).

I was considering placing the role of catalysts, be them negative or positive, but they are natural consequences of appreciating point 2 and 3.

I now feel comfortable (the word for me is clean) in our mental approach.