Who we are

The Founders

Our founders, Oliver and Ed, old friends, are self-taught investors. Having both been introduced to value investing in their early adolescence, it’s no surprise that they’ve ended up business partners. Their first meeting occurred during their first week at university, after a building evacuation caused by a fire alarm. They quickly realised their many similar proclivities, their love for investing being at the forefront. It was seeing the Intelligent Investor on Ed’s bookshelf that sparked the initial conversation, not to mention the countless hours of debate, which they have kept up over the course of the years.

Ed’s upbringing was rather unconventional, having not attended school from the age of ten. Being multiple years ahead of his cohort throughout primary school, he felt as if self-teaching was the only way he could intellectually challenge himself. This gave him the capacity for an enhanced degree of creativity, which he has put to use in his investing career.

Oliver’s backstory is more traditional. Having been at boarding school for most of his formative years, he found it best to take on more independence than was typical in his environment. He has always had a very particular way of doing things, admittedly sometimes to the annoyance of his teachers. Having not taken interest in the common topics of conversation at school, e.g. gossip, he devoted more of his attention to his interests - value investing being at the top of the list.

Both were keen sportsmen in their youth - developing a competitive edge which they have carried into their professional lives. Longevity is still a priority for the two of them - they hope to take advantage of the “eighth wonder of the world”, as Einstein put it, as much as possible. You can keep track of how that’s going by the frequency of our posts.

Disclosures

See Attached

Our Philosophy

Our value-investing philosophy, beyond standard practice, has three prongs:

  1. Zero-debt businesses

  2. Management under-promising and over-delivering

  3. Single activity businesses

So, why do we prioritise these?

  • Businesses with strong competitive advantages do not require debt financing for growth. Debt on the balance sheet is a sign of weakness - there isn’t much sense in investing in a business which can’t stand on its own two feet. A debt-free balance sheet aids free-cash-flow generation and increases net current asset value (NCAV), providing effective downside protection.

  • The management’s past behaviour, what they have promised versus what they have delivered, is the only way of using the history of the business as a proxy for what to expect moving forward. Targets are not always met - reasonable expectations must be set.

  • Businesses which engage in one activity are simple. Simple is predictable. The fewer assumptions we have to make, the better our judgment will be.