LONG TERM INVESTMENT HORIZON
In the short term there can often be little correlation between stock success and business success. But over the long term this correlation is high. Discipline and patience are required to exploit these price/value discrepancies. Our efforts are focused on finding companies capable of increasing their intrinsic values through their own efforts. As long term investors we can exploit the time arbitrage afforded to patient investors with patient capital.
VALUE ORIENTED INVESTMENT APPROACH
We apply a private business owner mentality to listed equity investments and focus on maximising the intrinsic value of the portfolio. We employ a strict price discipline, and seek to identify companies capable of increasing their intrinsic value through their own efforts.
We disagree with conventional wisdom that diversification lowers risk. Excessive diversification prohibits the ability to carry out the due diligence required to think like business owners, and to know how to act when the quoted market price changes. Concentrated portfolios may be more volatile than the market, but short term performance is irrelevant in the long term accumulation of wealth. We are benchmark agnostic; a business owner mind-set is not consistent with taking a market view.
Volatility can provide an opportunity to purchase assets at a discount to what they are worth. Risk is not volatility but rather the possibility of permanent loss of capital. Research efforts are concentrated on finding companies with strong balance sheets, the ability to generate sustained supernormal profits, and which are trading at large discounts to intrinsic value.
Tollymore Investment Partners is a private investment partnership. Tollymore's objective is to compound clients' capital over the long term by investing in a concentrated portfolio of undervalued high-quality businesses.