We Are Explorers.
The general principles of intelligent investing have been widely promulgated for 80+ years. Yet, their adoption remains rare and irrationally uncommon. Through studying the most successful long term investors over the past 80 years, we have assimilated a unique portfolio of high conviction, highly contrarian investment guidelines that have been shown to generate investment profits.
At our core, we are explorers. Our investment process starts by just choosing a country. Through looking at every single equity without bias or preconception, we are able to start fresh with every opportunity, and evaluate each on its own merits with rationality and intellectual honesty guiding every step. We combine an extensive mile wide and mile deep approach with a negative selection process. This enables us to reject 99.99% of opportunities that come our way. When we do find that rare opportunity thats fits our criteria, we invest in a big way.
Starry Night by Vincent Van Gogh
In our investment approach, we liken the landscape of equities to a depiction of Saint-Rémy-de-Provence just before sunrise. At this hour, countless stars merge into a unified backdrop, yet a few blurred but bright stars stand out against the rest. Similarly, when we evaluate numerous equities, most blend into an indistinguishable mass, easily rejected. However, a few shine bright and demand closer scrutiny.
For these standout equities, where an investment thesis emerges but remains indistinct, we dedicate significant time and effort to rigorous analysis. Our research process meticulously uncovers the fundamental assets, liabilities, and cash flow drivers of the company. If we can clearly articulate a margin of safety based on these fundamentals, we proceed with the investment.
Great Wave Off Kanagawa By Hokusai
This is the Edo Region, where the predominant industry was fishing. Fishermen would ride in long wooden boats, catching and transporting fish in what was an uncertain and often perilous journey. The waves are seen to have claws, as if they intend to rip apart the boats. The fishermen on the boats are nearly invisible, blending in with the color of both the boat and the deep blue waves. Zooming out, this danger contrasts sharply with the peaceful sky and the serenity of Mount Fuji.
Our process is unique because we work to zoom in, past the peaceful depiction and into the hidden daily struggles of a mid-level worker in any business. This research allows us to value a business from the perspective of a business owner, not as an outside investor. By understanding the intricate challenges faced within the company, we gain a deeper, more accurate insight into its true value.