We seek companies with the following characteristics:
Management is sensitive to shareholder interests. This should be well defined by management to its shareholder base. Management should be able to define established benchmarks toward long-term growth.
Management must demonstrate the ability to maintain or improve product or service dominance over long periods of time.
Companies should generate a superior return on invested capital over their cost of capital and have a proven record of re-deploying excess cash flow into high return assets or return it to shareholders. In essence, companies must possess many of the characteristics of positive economic value added (EVA).
Companies can be generally classified as GARP (Growth at a Reasonable Price) type equities.