Once we have identified a promising company, we tend to follow the company’s progress for a time before investing, and then invest in stages. Before committing capital we put each of our potential investments through a thorough review process that includes analysis of the following:
- Management
- Valuation, both relative and absolute
- Accounting practices
- Economic, business and product cycles
- Competitive position
- Business model and projected financial performance
- Trends in industry, subsector and comparable companies
- Corporate governance