We look for practical and profitable

We invest in high-quality businesses that are understandable. Typically, we look for companies with competitive advantages that allow them to earn high rates of return. We like industry-leading companies with wide “moats”.  Typically, the companies in which we choose to invest have an above-average level of profitability. Ideally, we look for “compounding machines” (i.e. companies that can reinvest earnings at high rates of return).

We’re in it for the long term

We are conservative-minded long term investors and not traders or speculators. We transact infrequently and thereby seek to harness the “magic” of compounding. We abide the adage “A lot of shavings does not make a good carpenter”.

We’re bargain hunters

We are price conscious and are only compelled to act on what we consider to be exceptional ideas.

We concentrate our efforts

We concentrate our investments in 15-25 companies in which we have high conviction.

We believe simplicity trumps complexity

We do not invest in structured products or other exotic investments. When we lack good ideas, we invest passively in low-cost broad market index exchange-traded funds such as those offered by Vanguard Investments Canada.

We consider ourselves stewards of our clients’ money

A primary consideration in our investment process is the risk of a permanent loss of capital. We eat our own cooking and typically have a significant amount of our own  money invest alongside our clients.

Want to learn more about APEX Financial Management?