"Time is the friend of a wonderful company and the enemy of a poor one"(Warren Buffett)
The most obvious way to compound wealth is to invest in the world's best businesses. Most of the richest people in the world have generated their wealth through such means.
The best companies have sustainably high cash returns on capital.
They have long platforms for global growth.
They have resilient business models which deter competing forces for their products or services.
It is important that we don't over pay for these wonderful businesses. We simply wait until they are within a reasonable price range before we buy, then we hold them (hopefully forever).
Companies of this calibre are so rare, that when we find one at a reasonable price, we allocate a meaningful amount, sit back, relax and enjoy the journey.
"The stock market is a transfer of wealth from the patient to the impatient" (Warren Buffett)
The companies and brands we love:
As one of the few firms who directly invests globally for Australian investors, Valor has a unique approach to asset management.
Australia is only 2% of the worlds markets, yet the vast majority of Australian portfolios are overly concentrated in Australian companies.
Valor strongly believes that the core part of a portfolio should be focused on what we consider the world's best businesses.
These are the globally dominant companies such as Berkshire Hathaway, Amazon, Alphabet, Facebook, Ambev, Safran and Microsoft.