Core Beliefs

  • Acquiring good businesses at deeply discounted prices is an important risk mitigator and a necessary condition towards the path of long term, sustainable and outsized returns

  • Investing is as much a psychological game as a financial one, in which behavioral and cognitive biases are important drivers of decisions, causing asset prices to suffer disproportionally more than economic variables

  • Selecting the right investing environment is a crucial driver of returns because only out of favor markets offer a consistent and significant disconnect between value and price (businesses tend to be priced fairly under normal circumstances)

  • Countries do not go out of business even when “they go bankrupt”; instead they become rare and ideal investment hunting grounds

  • Risk management and capital preservation are crucial conditions for the power of compounding to materialize