Investment Principles


The Big Picture

  • Never feel compelled to act if it doesn’t make sense to act.
  • Focus on the bigger picture and long term story rather than the detail of the here and now.
  • Always consider the macro environment (economics and politics) when evaluating assets.
  • We believe that the ‘market’ is almost always incorrectly priced. The question is which way and by how much?
  • Never let a benchmark dictate asset selection or weighting.

Investment Performance

  • We set out to systematically chip away at returns, by focusing mainly on what we buy, then on when we buy it (i.e. the price) and finally on when we sell it.
  • Have a clear view on the likely returns of any asset and the portfolio as a whole.
  • We aim to produce as consistent returns as possible within the context of volatile asset prices and tax sensitivity.



  • Achieve a sound balance in diversification (not too much or too little). Never add an asset simply for diversification “benefits”.

  • Deliberately avoid any asset/class that will probably not contribute to portfolio performance over the medium-term.


Asset Selection

  • Only include an asset that will make a positive contribution to the portfolio. Pay no more than the fair price for any asset.

  • Be investment agnostic. Evaluate every investment decision on its merits and according to the same framework. This extends to non-financial assets (e.g. private investments and property).

  • It is ultimately management that drive companies. Understand how management think and back those you believe are ‘right’ for that business on a long-term view.

  • Remember that companies have life cycles. Understand where every company is and how it can create value from its current position.

When to Sell

  • Only sell a good company/asset when it makes really good sense to do so. Our main reason for selling would be when a company essentially changes (e.g. when their world changes their outlook or the strategy is changed).

  • Remember the tax and transaction cost implications of selling.