Our Investment Philosophy
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A Long-Term Endeavor
We believe that building wealth is a long-term endeavour. Our investment philosophy and careful processes have been refined through many years of investing and have proven themselves in multiple cycles and multiple jurisdictions. Our disciplined approach to investing ensures that, in spite of being focused on portfolio out-performance, we will not speculate in order to create additional profits.
Our investment philosophy is built on the belief that the economics of a business are what drive its long-term success. Investing in sustainable, high-quality, long-term growth enterprises that can deliver predictable, above-average economic returns will produce greater investment results over time. Betting to double your money is the quickest way to lose it, so we prefer to invest in strong businesses rather than popular ones.
We will not, however, buy shares in a company solely because it exhibits the criteria listed above. A disconnect exists between price and value, which requires discipline in the price paid for earnings. Our clients’ long-term investment success depends on a combination of buying discipline and appropriate investment due diligence.
Everything we do is guided by our investment philosophy. If you’d like more information on how our philosophy is applied to our activities in listed equities, please don’t hesitate to contact us.
How Our Investment Philosophy Guides Our Decision-Making
Our investment philosophy serves as a guiding framework that shapes our entire decision-making process. It helps define our investment objectives, manage risks, and maintain a long-term perspective so we can stay on course and work towards building solid portfolios for our clients. By allowing our investment philosophy to guide our processes, we are able to make consistent and disciplined investment decisions that align with our clients’ long-term goals and financial objectives.
Sleeping Well Before
Eating Well
We are a highly ethical team committed to good investing. We make decisions that allow both ourselves and our clients to sleep well, knowing that we will always choose reliable, sustainable options rather than gambling with high-risk investments. When it comes to our clients, we’re relentlessly transparent, honest about our capacity, and vigilant in applying our process. We do this because we know there’s simply no other way we can deliver on our promises.
Demystifying
Active Wealth
Our investment philosophy aims to make sure our clients are well-versed and well-informed because we believe that is the only way a genuinely trusting relationship can exist. To foster that, we ensure our clients always receive full visibility into our processes, complete transparency with our decision-making, and ongoing education into what we call ‘active wealth’. In doing so, they can remain actively involved in their own financial futures.
Our
Duty-of-Care
We believe every generation has a duty of care to their previous, present, and future generations. In that context, we care deeply about the footprints we leave, the examples we set, the habits we encourage, the ideas we foster, and the visions we shape for others. We are committed to investing responsibly, not only for the benefit of our clients but also for the benefit of those who will continue overseeing their family legacy after them.
A Genuine
Long-Term Approach
We believe in nurturing strong relationships in every part of our business, especially the ones we have with our customers, between colleagues, and with our portfolio organisations. Mutual respect, open communication, and shared goals are the hallmarks of any successful long-term relationship. We know we need to think long-term if we are to deliver sustainable growth, and that requires us to invest in our relationships as much as anything else.
New Dimensions
of Wealth
In the past, wealth was one-dimensional. Primarily centred on financial well-being, it often came at the expense of everything else. No longer. We believe wealth should contribute to our own and our family’s well-being in a multi-dimensional way. We aim to achieve this by creating wealth that not only delivers on its traditional role of financial security but also enables and supports vitality, transformation, connection, positivity, responsibility and experience.
The
Family Unity
Families matter immensely to us. From our own family to those of our clients and our wider global community, we strongly believe they are the wellspring of connection in society. This belief drives us to assist the families in our community as they strive for security, support, and empowerment. Our investment philosophy seeks to accomplish this by prioritising long-term growth so they can strengthen their financial future and build their family legacy.
How We Discover the Companies of Tomorrow
Our investment philosophy is all about choosing the companies that will serve us tomorrow by investing in them today. We look beyond short-term results, instead opting to focus on identifying and understanding the economic foundations that drive a company’s long-term success. This approach allows us to discover and invest in businesses that have the highest potential for sustained growth and long-term profitability, rather than chasing fleeting trends.Â
Frequently Asked Questions
An investment philosophy is a set of guiding principles and beliefs that shape one’s decision-making approach towards their investments. It provides a framework for how people analyse and select their investments, manage risk, and navigate their chosen financial markets.Â
At EC Pohl & Co, we believe that having a well-defined investment philosophy is important for a number of different reasons. Not only does our philosophy equip us with a clear set of principles to guide us, but it also keeps us disciplined and consistent in our approach.Â
This allows us to maintain our convictions and stay on course with our strategies, even when market conditions become uncertain or volatile. In doing so, our investment philosophy resolutely provides us with a clear pathway towards long-term success.
To ensure an investment company’s philosophy aligns with your own financial goals, you will first need to establish a clear understanding of why you want to invest. Once you’ve determined what you want to achieve from your investments and how you’d like to approach this, you’ll have a much clearer set of ideals to work with.Â
After clarifying your reasons for investing, you’ll then be able to research and examine your chosen company’s investment philosophy to determine whether your goals align. We recommend looking at key factors such as the company’s focus on long-term growth, its attitude towards risk, and its track record in achieving goals similar to your own.
To develop your own investment philosophy, you’ll want to start by identifying your investment goals, risk tolerance, and ideal timeline to give yourself direction before moving forward. After establishing these fundamentals, you can then begin researching different investment strategies, asset classes, and investing principles. This will help to broaden your knowledge and understand the pros and cons of various investment approaches to identify which ones resonate the most with your fundamental requirements.
On top of considering your financial ideals, it can be beneficial to reflect on your core beliefs in other areas of your life as well. This can help shape your investment philosophy by ensuring you prioritise investing in companies that align with both your financial goals and your personal values. Once you have done this, you can start to shape the investment principles that will form the foundation of your investment philosophy.
Before embarking on your investment journey, you may also want to consider seeking guidance from a financial advisor. These knowledgeable professionals can provide you with personalised advice and expert guidance to help you identify your investment objectives and establish your own philosophy with confidence.
EC Pohl & Co is a funds management firm, selecting quality companies and building high-conviction long-term investment portfolios for sophisticated investors.
