Over time, the market creates significant distortions between price and value on specific securities. We focus on identifying the distortions that can be translated into investment opportunities with significant margin of safety.
We meticulously study public traded companies in Brazil. We seek to deeply understand the company’s business, its competitive position, the return on invested capital, the barriers to entry, the growth prospects, the different shareholders alignment of interests, amongst other factors that might explain the company’s long-term success.
We actively seek potential catalysts for our investment thesis, which may affect the market’s perception and, consequently, the price of the securities in our portfolio.
We pursue risk reduction to protect our investments through conservative estimates and by employing a margin of safety approach in every Investment.
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
– Paul Samuelson