Notes

Insights
& Perspectives

From Our Desk

Short notes on investing well

Occasional writing on the habits that compound patience, restraint and attention to detail. Nothing here is advice; it is simply how we think.

Investment Perspectives

On holding cash without apology

Cash is routinely described as a drag money "sitting idle" while markets move. We see it differently. Cash is an option on every future opportunity, and options have value precisely when nothing looks worth buying.

The pressure to be fully invested at all times serves managers, not owners. We would rather earn nothing for a while than overpay for the sake of activity. When the right opportunity appears, the cash is there that is the whole strategy.


On not selling

Most portfolios fail at the exit, not the entry. A good business bought well is sold too early for one of two reasons: fear during a fall, or boredom during a flat stretch. Both are emotions, not analysis.

Our rule is simple sell only when the thesis breaks or full value is recognised. Everything else is noise, and noise is not a reason to act.


On due diligence as a habit

Diligence is often treated as a phase a checklist completed before purchase, then filed away. In our experience that is when it matters least. The real work is continuous: re-reading filings, re-testing assumptions, watching for the small change that alters the thesis.

A checklist catches fraud. A habit catches drift. We aim for the habit.

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