Buying shares at the stock market automatically make you a minority shareholder of the respective company. The main role of stock markets is raise funds for companies to invest and grow their operations, while providing a transparent and secure platform for the trading securities. However, the agility and easiness of trading sometimes causes irrational behaviors from investors when buying or selling any stocks have the same criteria of playing cards in a bridge game. Our conviction is that the only way to generate long-term value to shareholders come from investing in companies capable to consistently grow their earnings and revenues over the years and continually work to widen their moats.
Below some details of the main aspects that form the investment philosophy framework practiced by the investment team of Capital Investimentos:
People and Corporate Governance:
“People” is the key to a business’s success. Ethical, talented and motivated management, are powerful strengths that generate value to shareholders.
Business Model and Perspectives:
Companies with profitable business and tested in different economic situations. Companies with strong brands and leadership in their respective industries. Favorable medium and long-term prospects.
Margin of Safety
Discipline and patience to invest only when market prices are below intrisic value of the business.
Example Report