macro thoughts and valuation effect ASSET ALLOCATION
These two factors also affect SECURITY SELECTION
But the latter is also affected by
MARKET STRUCTURE OF THE INDUSTRY INVOLVED (this includes the affect of technology)
MANAGEMENT
CAPITAL ALLOCATION
THE BUSINESS MODEL
CAPITAL STRUCTURE
REGULATION
TECHNOLOGY
We place emphasis on
insurance strategies
how the cost and value of money will evolve (which value of money environment, stable, deflation, inflation and the spread between the change in cost and value of money)
how currencies are priced relative to each other
the illiquid premium (as we are LT investors). However we want to focus on companies close to us so have more info then a company in Vietnam that seems to be trading at less than working capital
Deep value stocks that are less dependent on how macro issues evolve
High quality companies
