Financial Growth Bar Chart

Companies generally have the following characteristics:

  • High-quality global companies with durable competitive advantages, whose business models and capital allocation process we understand
  • Strong earnings potential, attractive valuation, and high financial returns and manageable debt levels
  • Benefit from secular growth themes
  • Generate robust cash flow to fund working capital needs and growth, dividends, and/or stock buybacks – limited need for outside financing
  • History of paying dividends with a sustainable payout ratio or the potential to grow or initiate dividends
  • Businesses that reinvest cash flow into high-return projects – creating a powerful compounding effect and value for shareholders.

Companies may benefit from these market conditions:

  • Aging population in developed countries (Europe, Japan and the U.S.)
  • Industrialization of economies and growth of consumer spending in emerging markets
  • Growth of mobile computing and Internet for commerce, advertising, social networks, news and information
  • Technology advancements such as ‘big data”, artificial intelligence, etc. becoming pervasive throughout the economy from healthcare, manufacturing, etc.
  • Healthcare innovation and service efficiency

Sell Discipline

We constantly monitor your core equity holdings, looking for “stock warning signs,” like senior management changes, sharp price moves, and significant earnings restatements. If a holding is no longer attractive, we will reallocate assets to a more promising position.