Our Investment Philosophy
Benjamin Graham is often referred to as the Father of Value Investing. His works, The Intelligent Investor and Security Analysis, provide the intellectual foundation of this concept.
According to Benjamin Graham, “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative.”
According to Benjamin Graham investors should thus spend time and effort to analyse the financial state of companies.
When a company is available on the market at a price which is at a discount to its intrinsic value, a margin of safety exists, which makes it suitable for investment.
In addition to this one should understand and accept that companies do not operate in a vacuum. A detailed analysis of the economic backdrop assists in understanding macro-economic trends which create investment opportunities.
These two principles of value investing against the macro-economic backdrop encapsulate our investment philosophy.
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