As Albert Einstein said: "The power of compounding is one of the wonders of the Universe!"
A 10% annual rate of return doubles your capital every 7 years. This represents 2x after 7 years, 4x in 14 years and 7x in 20 years!
In a world increasingly dominated by passive investing, the opportunity and inefficiencies for active management is even greater
Index investing does not discriminate companies by the quality of their management or of their business model
This approach can also be applied to investing in the public markets, and represents an "owners' mentality" to investing. We favor investing to trading
A good manager with a diversified portfolio meeting the above criteria should provide you with a "good batting average" over the long term
Quality businesses tend to command premium prices, since generally their quality tends to be discounted in the price you pay for it in the market. Volatility provides the opportunity to buy a quality business at reasonable or bargain price
We build long term relationships with the managers we invest in and let them compound
The most conservative investment over the long term is to be a minority investor in the best companies of the world