We Think Like A Business Owner, Not Like A Trader

By Martin Lord, Chartered Wealth Manager & Senior Investment Director - Investec Wealth & Investment
 
At Investec, we help our clients build and maintain their wealth. The ability to take a long-term view is a key asset in a world focused on the short term. We aim, to take advantage of the compounding of returns that accrue within businesses as they reinvest profits in wealth-creating projects. An asset-owner mind-set also requires that we engage with the management teams of the businesses in which we invest. When making investment decisions we prioritise the quality of the businesses we invest in. We aim to buy excellent businesses at fair prices, not fair businesses at excellent prices.
 
There are four key aspects of quality that we consider:
(1) Value Creation
(2) Persistence of Value Creation
(3) Growth
(4) Balance Sheet Strength
 
VALUE CREATION IS KEY
We define value creation as the ability of a business to generate returns on invested capital that are g...