There are five key pillars to Chester’s investment philosophy
1. Inefficiency
We believe investor biases and other market forces often create a disconnect between stock prices and intrinsic values.
2. Cash Flow
We believe sustainable earnings growth is reflected in an ability to generate free cash flow and therefore dividend growth.
3. Conviction
We allocate capital to ideas where we have conviction and we understand the business. Complexity can add risk and is a distraction.
4. Valuation
Although we invest in quality businesses where we have insight, valuation support is critical to ensure we have an appropriate margin of safety.
5. Preservation
We believe we can mitigate company-specific risk to some extent by focusing on three key risks in investing (operating, financial and corporate governance risk).
“We believe a high conviction equity strategy with an expanded opportunity and risk management mindset offers the greatest benefit to investors in the long term”
Rob Tucker
Managing Director