This was our first introduction to the strategy. The performance track record has been okay but new management came on board in February and they have set about transforming the strategy. The focus is on those things that matter.
There are three things that they feel you need to get right:
1. Is the business worth owning? (This is about its advantage and not its price).
2. At what price can I buy this advantaged business? (Buying something for less than its worth, valuing the business reality, what is the business actually producing, what is the value excluding business sentiment etc).
3. And then the people.
All of these aspects must work together for success…..read more