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Our framework

How we invest

We're value investors. We buy a few great businesses at sensible prices, then let them compound.

  • Find great businesses
  • Buy at a sensible price
  • Hold for years
50x100x0481216 years$1Year 8: only 10xYear 16: 100x
The median 100-bagger took 16 years. Most of the gain comes late.

What we look for

Six traits found in almost every 100-bagger. Tap a card for an example

The full checklist

The number we never skip

Return on capital: the profit a business earns on every dollar it puts to work.

20%+held for years
is special

Falling while it invests?Getting bigger. Fine.

Falling as rivals catch up?Getting worse. Danger.

How we calculate it
reinvested$120¢+Put to workThe businessProfit, every year
EBIT ÷ (net working capital + net fixed assets), excess cash removed

Moats that survive AI

The five moats
If AI can learn it, it is not a moat.

AI can copy

  • Information
  • Software
  • Content

AI can't reach

  • Proprietary data
  • Licences and regulation
  • Physical assets
  • Trust and brand
  • Owner-operators

Until it shows up in profit, a moat is just a story.

CashShort-termbondsGreat businessesfairly pricedOur bar

The bar every dollar must clear

Real inflation + 3 to 5%

Below the bar, money isn't pulling its weight.

So we stay fully invested, and hold cash only when everything is severely overvalued.

The hurdle rate in full

Where the money goes

Money starts at the top. It only moves down when nothing above is reasonably priced.

Defence comes from steadier stocks, not from sitting in cash.

High-conviction compoundersHome by default
Global quality leadersBroader, still growth-led
Low-beta dividend stocksThe defensive layer
Gold and cryptoWhen valuation allows
Cash and short-term bondsParking only

How we buy, hold and sell

Buy

  • Only what we understand: four or five names
  • The market is wrong about something specific
  • Bottom third of the price range

Hold

  • No market timing
  • Expensive alone is no reason to sell
  • Years, not months

Sell

  • The business deteriorates: sell now
  • Overvalued for 3+ years: consider it
  • Growth ending: sell before the re-rating

Before we buy, we ask

0 / 6

Getting paid to wait

Like the business, not the price? A cash-secured put pays a premium while you wait.

How it works