Coffee Can PMS Investing strategy neither works on value nor growth; it works on
quality investing with sustained business outperformances over long periods of
time. Few business metrics that portfoliolooks at are :
• Been around in the market for at least 10
years,
• Delivered revenue growth of 10% and
• Return on capital employed of 15% in each of these
10 years.
The success of Coffee Can Investing strategy depends
entirely on the wisdom and foresight to select the objects to be placed in the
coffee can, to begin with.This philosophy of Investing is built to identify
great companies that have the DNA to sustain their competitive advantages over
ten, twenty, thirty years ( or longer ). This is because the ‘greatness’, which
this portfolio seeks, is not temporary,
so, is surely not a short term phenomenon. Great companies endure difficult
economic conditions and do not get disrupted by evolution in their customers’
preferences or competitors, or operational aspects of the business.Often such
companies appear conservative, however, they do not confuse conservatism with
complacency. Their management teams strive and strategize to deliver results
better than the competition, year after year. These traits are rarely found
outside of great companies. Given the desire for longevity and consistency of
performance around ROCE & Revenue growth, Coffee Can Investing is oriented
towards B2C over B2B sectors.
PMS AIF WORLD is a modern
day analytics and content based Wealth Management firm helping today’s and
tomorrow’s investors to create wealth over sustained and long periods of time.
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