Timeless Principles for long‑term wealth creation
Our Governing Beliefs: We believe enduring wealth is created slowly, unevenly, and unemotionally through patient ownership of innovative businesses, sustained by conviction, discipline, and an understanding of human behavior.
The Ten Investment Principles
What we look for in a successful company
Our investment approach is grounded in disciplined analysis and a long-term perspective. We focus on identifying companies with durable competitive advantages, strong leadership and the potential to create value over time.
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- Large addressable market, or
- Small but fast-growing market, or
- Consolidating market, or
- Gaining market share
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- Technological advantage
- Proven market acceptance
- Strategy for new product development
- Proven business model
- Potential for scale
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- Capital intensity
- First mover advantage
- Patents
- Infrastructure costs
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- Unit volume growth
- Free cash flow, “Profits are an opinion. Cash is fact.”
- Dilution
- Profit margins
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- Imagination
- “Bet on the jockey, not the horse”
- Low turnover
- Having the tools to deal with instability, doubt and unpredictable external risk. Resiliency in the face of the “unknown unknowns”
A disciplined approach to buying and selling
Our investment decisions are guided by a consistent, long-term framework focused on identifying quality businesses, managing risk and remaining patient through market cycles. We emphasize careful selection, thoughtful analysis and deliberate action both when initiating and exiting positions.
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We seek companies with strong fundamentals, including:
- Innovation and effective execution
- Barriers to entry
- Experienced, high-quality management
- Solid returns on capital and strong free cash flow
- Large market opportunities and unit growth
Price matters. We emphasize valuation discipline, seeking opportunities where market prices compare favorably with our assessment of long-term business value. We avoid relying on macroeconomic forecasts and instead focus on company-specific analysis using diverse research sources.
We are long-only investors and do not rely on technical factors, sector targets or leverage (except for short-term cash flow needs). We add less as stocks rise and prioritize patience, recognizing that market prices fluctuate more than business value.
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We typically sell when:
- Capital is needed
- Fundamentals weaken
- Our thesis proves incorrect
- Better opportunities arise
We do not sell based solely on price movements. Our approach favors low turnover, with holding periods generally ranging from three to five years or longer.
Every investor’s situation is unique and you should consider your investment objectives, risks, and costs before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation. Any opinions are those of Boris Kaplan Putrich Group and not necessarily those of Raymond James.
