At QCM we keep an open mind and understand that value in the financial markets is bound to present itself in multiple ways: we avoid excessive rigidity and refrain from sticking stubbornly to a single strategy.
However, we do tend to concentrate the majority of our portfolio in a restricted number of extraordinary companies which we hold with a long investment horizon. These businesses must have three main characteristics:
Such companies typically sell at a premium and only during times of crisis they can occasionally be acquired at the discount we require: it is precisely at those times, when most investors are running for cover, that we are most active and typically buy aggressively.
Vice versa, when optimism and euphoria abound, we tend to become defensive and are likely to take profits.
Between those two extremes, our activity level drops to a minimum and focuses on opportunistic situations as they occur. We do not shy away from holding large quantities of cash in the absence of suitable opportunities.
© 2014 Quintessential Capital