Identify superior companies
-
Identify companies achieving business success
-
Understand sources of that success
-
Determine likelihood success continues
Balance concentration and diversification
-
Own 20 to 40 companies
-
Cap sectors and holdings
Maintain the portfolio, selling when appropriate
-
Invest with intention to hold for three to five years or longer
-
Sell when holding is no longer likely to add value relative to alternatives
-
Stay fully invested at all times
ONE PROCESS
Ithaka's core belief is that over time a company's share price follows its free cash flows. The ability to grow free cash flows comes from having opportunities to effectively allocate capital with high returns on that capital. A company that can grow cash flows for many years can compound returns for investors over many years.