Global Value Investing with Discipline, Conviction and Simplicity
 

At Phronimos we seek simple yet outstanding businesses, with powerful competitive advantages, generating high returns on capital and strong cash flows, with a strong financial position and managed by talented and honest executives, who are or are incentivized to think like owners.  

 

These companies should be able to grow their earnings materially over a five year horizon. 

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We invest globally, wherever the opportunities may lead us. Great businesses, in attractive industries, run by outstanding people, can be found in any part of the world, from Kansas to Kenya.  

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We seek to pay a fair or reasonable price, with only limited risk of permanent capital loss given a worst-case scenario. 

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When we find a great investment idea we invest in size. The portfolio may hold as few as ten securities at any time and is unlikely to hold more than twenty-five. Diversification is a hedge against ignorance. Our approach to risk management is to invest in simple, yet outstanding businesses that we understand extremely well, acquired at attractive prices.  

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We seek to invest for the long-term. Our investment time horizon is decades, but we expect to demonstrate strong investment results over a rolling three-year window.

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We aim to keep things as simple as possible, but that doesn't make it easy.

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