Our investment process begins with our eight criteria. Compounders score well on the below, or, are on a fast track to doing so.
01 — Participates in a large industry with a defensible leadership position
02 — Recruits and retains talented people that are patient and ambitious
03 — Develops globally attractive products and services
04 — Considers environmental and societal impacts in its expansion
05 — Operates low cost marketing channels to regularly win new customers
06 — Transacts profitably with customers and gives them a reason to return
07 — Transforms profits into long term shareholder value
08 — Available at a clear discount to the company's potential
We go out into the field to research market share, product roadmap, and customer satisfaction - attributes only determinable by meeting with others.
We construct custom 5 year forecasts that incorporate profitability, working capital, pace of investments, acquisitions, and growth potential.
Pricing It Right
We perform rigorous internal rate of return analyses to ensure the potential for double digit returns in every investment we make.