1. Only invest in a compelling opportunity, otherwise we’d rather do nothing.
  2. We value companies based on long term outlook. So we are less concerned with daily news and short term results announcements.
  3. Asymmetric payoffs are much more favourable. We like limited downside and significant upside.
  4. We prefer unloved or unknown stocks with limited or no research. We want to find information other investors don’t bother finding out – so we have a small cap bias. We still invest in large caps when opportunities arise.
  5. Remain generalists and focus our investments where there is greatest value.
  6. Ask the question every day – is the story the same, do I still want to own the stock?
  7. We have a high degree of confidence in our investments. So if a stock we own goes down we review our analysis and if we made an error we try to learn from the mistake.
  8. We like finding arbitrage opportunities, misunderstood fundamentals, and market dislocations that can provide significant upside with low risk.