Our Philosophy
Sustainably maximize spread over cost of capital
Resilient business reflecting in high (ROCE - WACC)
Sustained high spreads over long-term emanate from some hard to replicate factors such as Brand perception, Network effects, High switching costs, Economies of scale, Intellectual property / R&D etc.
Maximise time horizon for reinvestment
Maximise period for which economics profits generated can by reinvested for growth – i.e. ^n
Reinvestment at high spreads for long periods come from structural demand drivers, consistent new product developments leading to increasing TAM, and low industry rate of change.
Right captain for the ship
Management team taking decisions to optimize spread and time horizon
Managements that have demonstrated the ability to adapt and make dispassionate decisions in addition to good corporate governance and capital allocation.
Our Philosophy
Sustainably maximize spread over cost of capital
Resilient business reflecting in high (ROCE - WACC)
Sustained high spreads over long-term emanate from some hard to replicate factors such as Brand perception, Network effects, High switching costs, Economies of scale, Intellectual property / R&D etc.
Maximise time horizon for reinvestment
Maximise period for which economics profits generated can by reinvested for growth – i.e. ^n
Reinvestment at high spreads for long periods come from structural demand drivers, consistent new product developments leading to increasing TAM, and low industry rate of change.
Right captain for the ship
Management team taking decisions to optimize spread and time horizon
Managements that have demonstrated the ability to adapt and make dispassionate decisions in addition to good corporate governance and capital allocation.