We really try to think like business owners. This means we try to judge the performance of a company or an investment by the underlying business progress rather than the shorter-term movement in market prices”
Our objective is to preserve and grow the wealth of our clients over multiple generations. Through our investments, we aspire to preserve both the wealth of future generations and the environment and society they will inherit.
We set out to preserve our clients' wealth by focusing on sustainable long-term growth. When investing our clients' money, alongside our own, we are guided by the principles below.
A long-term investment horizon allows us to cut through short-term noise and focus on what really matters. We can act and think like business owners and build active partnerships with the companies and funds that we invest in. We believe this creates real value for our clients.
Even modest levels of inflation erode the real value of capital over time. Our investment objective is to outpace inflation and generate sustained returns. We do this by finding high quality companies with pricing power and high barriers to entry.
Sustainability factors cannot be separated from economic factors as they are inherently part of the long-term risks and opportunities of any company. Sustainability analysis is explicitly integrated into our investment process. As long-term investors, we want to own high-quality businesses that have resilient business models and sustainable business practices.
We seek assets that provide genuine protection in periods of market stress. This allows us to be on the front foot and smooths the journey for our clients. Our in-depth research on companies means that we invest with conviction while minimising the risk of permanent capital loss. Taken together, we build sensibly diversified portfolios, combining investments in high-quality companies with true diversifiers.
We often speak about our bottom-up investment approach. However, in this Quarterly Letter, we (ironically) take a look at this approach from a top-down perspective, outlining our investment objective, as well as the people and processes that work to achieve this.
Investing for the long term
We've always invested in long-term, sustainable business. To discover how environmental, social and governance issues are embedded in our approach to wealth management, please review our ESG report.
Preserving and growing your wealth means investing sustainably over time. We are committed to investing responsibly on behalf of our clients and do so by following our Responsible Investment Policy.
Insights
The big ideas and important details behind our approach to preserving your wealth for the long term.
22 February 2022 | 5 mins
As incoming data shows inflation rolling over—despite low unemployment—the good news may not last. But what happens next? In this Strategy Blog, we discuss the state of inflation and why interest rates look more like plateaus than peaks, leaving us at odds with the money markets.
15 February 2023 | 30 mins
Falling real income, rising inflation, and monetary tightening have led to a sense of economic fatalism. However, throughout Europe, the UK, and the US, signs are suggesting a (hopeful) turn of events, making for a better outlook for the year ahead.
08 February 2023 | 7 mins
Economists continue to cast a pall of gloom over economic forecasts, questioning future output and growth. In this Strategy Blog, we discuss the supposed gloomy outlook and put into perspective the new opportunities and incentives for useful economic activity.
