t V&S, we take a private equity approach to public equities.
- We engage in long-term investments with an owner’s mindset. Our target investment horizon averages at 3 ~ 5 years from the point of investment.
- Our investment decisions are based on business-specific analysis rather than the overall stock market outlook.
- Such fundamental analysis include looking into the aspects of a company’s business model, franchise value, entry barrier, market positioning, and economies of scale among numerous others.
- A hybrid of qualitative analytics & quant models allows in-depth forecasting for the industries and companies we look at.
- We conduct extensive interviews with all major related parties of a candidate company including its customers, employees, and other various industry counterparts.
- Herd mentality can lead to exploitable mispricing in the stock market
- Widespread pessimism about the market or a particular stock can drive prices below their intrinsic value while over-emphasizing the risks. Buying into such out-of-favor/oversold stocks can lead to above average gains.
- Stocks must be trading at a discount of minimum 30% to their intrinsic value to be included in our portfolio.
- A strictly kept margin of safety at entry minimizes the risk of loss in investment capital.
- Stock prices may fall in the near term due to inefficiencies in the market. However, prices tend to converge with their intrinsic value in the longer term.
