We seek to purchase shares of companies that meet three basic criterions before considering any further potential:
High quality businesses with ample reinvestment opportunities
Run by intelligent management and invested alongside shareholders
Reasonable price for the present and future prospects
High quality businesses
A business which has durable competitive advantages that allows it to generate high return on its invested capital; has very low financial debt and has opportunities to reinvest their earnings through more products and services
Intelligent managers and owners alongside
CEO and management who have demonstrated intelligence, integrity and energy for their business over the years and invested large amount of their own money alongside the fellow shareholders
Reasonable price for the present and future prospects
We like to pay no more than 15 times of current cash earnings to be part owners of the business