Our investment process begins with our eight criteria. Compounders score well on the below, or, are on a fast track to doing so.

Investment Criteria

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

Determining Quality

We go out into the field to research market share, product roadmap, and customer satisfaction - attributes only determinable by meeting with others.

Calculating Cashflow

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.