Global Value Investing with Discipline, Simplicity and Integrity
Phronimos Investment is an independent investment firm combining experience, a disciplined investment approach and a truly global outlook.
At Phronimos we seek simple yet outstanding businesses, with powerful competitive advantages, generating high returns on capital and strong cash flows, with strong financial position, 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.
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.
We seek to pay a fair or reasonable price, with only limited risk of permanent capital loss given a worst case scenario.
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, at attractive prices.
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.
We aim to keep things as simple as possible, but that doesn't make it easy.