We seek to know what we own: implying a highly concentrated portfolio
- the maximum allocation is 25 % to protect us against event risks.
We allocate capital based on expected returns. As market prices and earning estimates evolve we try to rebalance our portfolio.
We'd prefer to stay invested forever, but will sell when:
- valuations are stretched and risk-adjusted returns turn negative
- we lose confidence in the management or disagree with major strategic decisions.
As a result our portfolio churn has averaged 10-15 % p.a.
