The Cook & Bynum Fund employs a pure value investment philosophy to build a concentrated portfolio of domestic and international securities that—based on fundamental, "bottom-up" research—meet four core investment criteria (in order):
- »Circle of Competence: Businesses that the portfolio managers understand and can reliably predict
- »Business: Businesses with durable competitive advantages ("moats") that yield predictable cash flows and high returns on equity
- »People: Companies led by managers who are trustworthy and who think and act like shareholders
- »Price: Companies whose shares provide a "margin of safety" by trading at a significant discount to the portfolio managers' estimate of their intrinsic values
The purpose of C&B Notes is to pass along ideas, concepts, stories, and information that are informing and influencing our worldview and "latticework of mental models."
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When Supply Chains Break
Manufacturers have spent years building lean global supply chains, but have underestimated the resulting opportunity costs. Natural disasters are showing them just how delicate these networks really are.
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India Paves Way for Retailers
For the first time the Indian government is allowing overseas companies to own as much as 51 percent of retailers selling more than one brand. More
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Better Batteries
Battery technology has substantially lagged Moore’s Law, and this deficiency has held back all sorts of applications from electric cars to tablets to solar panels. More
