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Getting lost in a forest on a Sunday afternoon is one of my favorite things to do this time of year.

COMPANIES WITH SUSTAINABLE CASH FLOW GROWTH. TEMPORARILY CHEAP ASSETS. PLATFORMS WITH NETWORK EFFECTS.

Investments: Welcome

We invest in companies that generate significant free cash flow and assets which are temporarily undervalued.


Our investment strategy is threefold:


  1. Network effects: Companies with global reach and powerful network effects. We love businesses that add a lot of value with limited assets and that can do that sustainably. We love platforms and marketplaces.

  2. Value: Companies with growing and sustainable free cash flow, high profit margins and low debt.

  3. Special situations: Companies or assets which are temporarily undervalued.

Investments: Text

We also have some overarching principles.


We believe in diversification. We understand the theory that your best ideas are probably worth focussing on so why have 25-30 positions if you have the greatest conviction in 5? But we don’t buy that. We’re more humble. Because however strong our convictions we believe nobody can accurately forecast the future: rules change, technologies are disrupted, consumers change, conflicts happen, natural disasters occur, management teams make mistakes and when these things happen (and they will) you’re usually better off not having most of your eggs in the same basket, whatever your convictions.


We invest globally. We aren’t restricted to a specific region or sector. We invest in great assets when opportunities open up anywhere in the world. This also helps to diversify the income from our investments.


We believe in the rule of law. We focus on countries where laws are respected and justice works. We need to know we can get our money back.


We believe in good governance. We do not invest in companies where we can’t speak to or understand management.


We’re not in a hurry to invest. We may hold cash or “zero beta” investments if we feel asset prices are too high. We will sometimes miss some super returns, but we’re ok with that. We’re more focussed on not making some super huge negative returns when things don’t work out. We like that everything we own should make money in the short to medium term.

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We’re patient after we invest. We look to hold investments for at least 2 years and usually much longer or even forever. Also we do not actively seek to short stocks and do not actively seek to trade in currencies and commodities.

Investments: Text
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