Investment philosophy
Head. Heart. Handcraft.
These words define how we do and understand value investing.
We know the long-term benefits of value investing. For this reason, we dedicate all our efforts to follow this philosophy in a disciplined way and to transmit it to our co-investors, so that they understand how they can take their savings to greater returns.
We invest in those companies that, after a thorough analysis, have a high margin of safety, that is, whose value is well above their market capitalization. This investment philosophy has proven successful throughout history.
These words define how we do and understand value investing.
We select the best companies to incorporate into our investment portfolio, those that trade at attractive prices and give us security and confidence.
Following this methodology focused on value investing, our management team has achieved excellent results through different investment products, positioning our funds among the most profitable in the long term.
How and why does Value Investing work?
We understand that the stock market is not perfect. In the short term, investors tend to be driven by their emotions and make buy and sell decisions based on less than objective and logical motives. This generates continuous fluctuations in the market. It is precisely in this environment that value investors have the ability to identify companies with a higher value than the price at which they are trading in the market, which offers excellent investment opportunities.
However, these fluctuations in the market eventually even out, allowing the market to re-price listed companies correctly. Therefore, those companies whose shares traded at a lower price in the past tend to reach their true value over time. It is in this scenario that we 'value' investors make profits, by buying at low prices and selling once the shares approach their true value.
Warren Buffett
Warren Buffett is considered one of the best investors in history. He is known for his focus on value investing, seeking companies whose market price is below their intrinsic value, while prioritizing the quality of companies over their price. One of his most notable quotes is: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price". This quote reflects his philosophy of investing in solid companies with long-term potential.
Charlie Munger
Warren Buffett's historical partner. Munger defended his strategy focused on value investing arguing that this investment philosophy is the only one with common sense. One of his most famous quotes was: “All intelligent investing is value investing, acquiring more than you are paying for".
With our exclusive App, you can follow the progress of your savings and their performance in real time. In addition, you can carry out your transactions with total comfort and security, from anywhere and at any time.
With this application we demonstrate our commitment to transparency and accessibility with all our co-investors.
If you are already a client, download the app to track the progress of your investments.
How do we do it?
To achieve a profitable portfolio of companies following our investment philosophy, we rely on five key points:
We invest in companies whose business models we understand and where we can project a long-term future.
We avoid companies with high debt.
We focus on those companies that have distinctive advantages over their competitors.
We closely examine the performance of the management of the companies in which we invest.
We buy shares when we identify that their value is clearly higher than their market price on the stock exchange.
Most of our fund managers' time is focused mainly on studying and analyzing companies. This involves a thorough analysis of their business, their financial statements, their suppliers and competitors, among other aspects, in order to identify or detect both opportunities and possible threats that may arise.
When valuing a company, our fund managers not only focus on its financial aspects, but also analyze in depth its competitive advantages, the barriers to entry in its sector and the possible risks that could affect its future performance. This allows them to gain a more complete understanding of the company and make more confident investment decisions.
What does this mean?
We analyze companies with the objective of identifying opportunities and risks, prioritizing those with long-term potential and an attractive valuation.
We discard those with high debt, poor management or regulatory risks. This approach allows us to build a solid and safe investment portfolio.
With this analysis process, most companies we examine are ruled out, which is why our investment portfolio only features stocks we are 100% convinced about.
In this search, we therefore discard companies with high debt, poor management, high regulatory risk, significant disruption in their industry, or those whose long-term potential we cannot clearly visualize.
Finally, if the company passes this evaluation process, our fund managers proceed to estimate its market value and determine whether there is a sufficiently high margin of safety between its intrinsic value and current selling price, in order to acquire shares of this company and add them to our portfolio.
What does this mean?
We analyze companies with the objective of identifying opportunities and risks, prioritizing those with long-term potential and an attractive valuation.
We discard those with high debt, poor management or regulatory risks. This approach allows us to build a solid and safe investment portfolio.
