WE WILL ONLY BE SUCCESSFUL IF OUR CLIENTS ARE SATISFIED OUR PRIMARY GOAL IS THE SAFETY OF THEIR CAPITAL.
Our name reflects our mission. The Laurus nobilis is a type of evergreen tree indigenous to the Mediterranean. Its leaves were fashioned into a wreath and given as the prize in the Pythian Games, forerunner to the modern Olympic Games. We feel it acknowledges the highest standard – something we constantly strive to achieve on behalf of our clients.
The Laurus corporate philosophy
We can only differentiate ourselves from the competition by the depth of our investment research.
We can only be successful over the long term if our culture and principles are in sync with the capabilities and proficiencies of our entire team.
We can only improve if we continually challenge existing norms.
Our philosophy can be summarized as “Quality at a Reasonable Price“. Our investment goals have been consistent and straightforward: to provide our clients with satisfactory returns over the medium to long term while minimizing the risk of permanent capital loss. We do this through investing in a very concentrated collection of businesses we understand:
that have a sustainable competitive advantage and superior returns well above their cost of capital;
whose cash flows are expected to be materially higher over the next five to ten years; and,
that are run by management teams with intelligence, integrity, and the energy to pursue excellence.
Unique Competitive Advantage:
We consider ourselves owners of businesses and not just people trading pieces of paper; our perspective is similar to the idea of buying the entire business. We want to own companies that have a unique competitive edge which will allow them to grow organically and at a rate faster than the economy.
High Free Cash Flow:
We prefer businesses that do not require a lot of capital to grow and where much of the growth will be a result of the company’s actions, therefore, providing high free cash flow. In other words, they generate a lot more cash than they need to maintain their operation.
A Rational Price:
Our first priority is to invest in high-quality companies that can compound returns over time. However, paying a rational price for an investment is also extremely important. We will only buy a business when it is trading at a discount to our assessment of its fair value.