How we Invest
We invest with discipline, patience, and a deep respect for value. Our approach was shaped by Tim's early work with legendary investor Peter Cundill.
This means we don't chase fads or try to predict the next big thing. Instead we invest where we see meaningful value.
Over the years, we've refined a simple but powerful framework that helps us stay focused and consistent. We evaluate every investment using four core criteria - what we call the ABBA framework.
A short video which discusses this further can be found here
A - Accident
As Sir John Templeton said: Too many investors focus on outlook and tread. Therefore more profit is to be made by focusing on value. In the stock market, the only way to get a bargain is to buy what most investors are selling. This give us a competitive advantage on the purchase. Taking advantage of these "short term accidents" is represented by the A in ABBA
B - Bird in Hand
Peter Cundill use to tell us to: a/ Protect the downside and b/ be patient. Our focus is on ensuring there is a margin of safety in each one of our investments
B - Brick House
We want our holdings to have staying power. This can be via the balance sheet or the business, ideally both. As Tim says, with every business a wolf from time to time comes to the door and we want to be invested in brick houses not straw huts
A - Alignment
Buffett has joked at a poker game if you don't know who the patsy is, you are the patsy. With this in mind, we want to ensure we are invested along side the board and management.
