Companies that consistently generate high free cash flow outperform the markets in the long term. The equity in these types of companies tends to protect capital in down markets. Their share price volatility is often lower than the market averages. They pay generous dividends and have the capacity to maintain or even increase those dividend payments in poor economic environments.
Global Equity Investment
This is a world of ultra-low interest rates, increasing debt, increasing government intervention, aging population and unsustainable entitlement programs. Therefore, the kinds of companies we invest in will have cash to return to shareholders, cash for acquisitions and cash to buffer the volatile economic environment.
We believe a concentrated global portfolio of these types of companies, identified through financial statement analysis and thorough research, will outperform the markets in the coming decades.