Price on 31/03/2010
11,96
Ticker: S3201
Investment Philosophy
We invest after complete an exhaustive fundamental analysis of the companies and it's business.We analyze and detail the financial models of the profit & loss account, balance sheet and cash flow. We study diferent ratios: leverage, ROE, PER, EV/EBITDA, P/BV and others, and we compare them with the sector where the companies belong, looking for undervalued companies, or what is the same, with high upside (at least 70%) “Safety Margin”.
In the company analysis, we go deep in to all the financial statements like accounting policy and capital budgeting. The quality of the financial statements and the sustainability in the long term is also taked into account.
The business in which we invest have to be in line with the economical logic and must also be understandable.
The company must have a solid business history, with stable and predictable net income .We positively value companies in which the management are involved in the capital as shareholders.
We mantain regular meetings with the diferent companies, this aproach gives us a better outlook of the investment. Our investments temporal target is the medium term.So we try to be full invested whenever our companies valuation offer high potential of return.
We do not use derivatives, avoid own leverage and do not use technical analysis. We follow the philosophy of the main value investors: Peter Lynch, Benjamin Graham and Philip Fisher.
