What we said in our fund newsletters over the years …
2005 – 2007
Going forward in an uncertain and confusing world, process must come first and the results will only come later, sometimes much later.
In a world where people zig and zag and shoot all over the place, we will only deploy our cash in that “value” corner of the universe because we are well aware that clients’ money does not grow on trees. We would rather be stewards than heroes each day and over the long haul future.
We can commit that in 2007 we will continue to work our value investing process because we know full well that those who do not sow shall not reap and those who sow foolishly or imprudently will reap nothing at best and tears at worst.
But hindsight is useless in a world where we have to live going forwards. Consistent with what we have done over the last 8 years, we are going to stick with under-valuations on a single stock and overall portfolio basis, with real businesses and dedicated management underlying each pick. Today’s under-valuations eventually translate into tomorrow’s out-performance, in our belief system.
If asked for our view of the near and longer term future as regards anticipated investment performance, we would just say that there will be no change in investment process going forward. We believe that what we have now is fundamentally anchored, working out well in practice and most certainly sustainable over the future.
In recent weeks the various big name research houses have called a bear on the equity markets, esp emerging markets incl Asia, esp small caps esp whatever. As before, we will not contribute to the debate and will instead continue to focus on getting our 3-Right stock picks right. With the 3-Rights in place, time is our friend as the above figures might seem to suggest.