A small number of exceptional businesses will dominate stock market returns in the decades to come. These businesses will generate substantial and enduring growth, made possible by the strength of their business models and corporate cultures. Over time, this growth will become the dominant driver of their share prices and will deliver outstanding returns to patient shareholders.

We search for a clear distinction between our view of a company’s prospects and that implied by the prevailing share price. The upside for successful stocks is unbounded, so our research prioritises the implications of things going right. We place as much importance on understanding each company’s purpose, ambition, and culture as we do on competitive positions. It’s both a creative and an analytical process with uncertain outcomes and wide error ranges.

Our culture is central to our ability to invest this way. We are tolerant of uncertainty and we are empowered to maintain bold positions in concentrated portfolios. We believe that this gives us the best chance of delivering great investment performance to our clients.