How do we invest?
In short, it depends. Listed equities, private equity and debt markets are fundamentally different so there isn't a single set of governing rules that could encapsulate the multitude of variables that differentiate the various markets. However for each investment space, we do have specific investment criteria that heavily influence the investment decision.
Our Pillars of investment
Bottom up analysis
This means looking at a given company without the colour of the wider market / indexes and macroeconomic environment. Why, well; we can't tell you what the market will do tomorrow or in the short term. Nobody can. Warren Buffet has often talked about his inability to predict the market and how its irrelevant to his investment decisions to buy individual companies.
His teacher, Benjamin Graham, wrote about a fictional character - Mr Market - who best illustrated the emotional behaviour of markets and how instead of predicting its movements, the emotional rhythm of the market can be of advantage to the patient and well researched investor.
When we look at companies, we analyse their business model, their cash flow, their management, their competitive advantage amongst other fundamental factors.
That doesn't mean that we ignore the macroeconomic landscape, we look at it and how it could influence the business but we ....