The craft of investing

We have capitalised on the excessive compression of multiples among top-quality companies to add names at valuations far below their historical average.

The disconnect between fundamentals and valuations creates a unique opportunity to build a portfolio of top-quality securities.

The fund considers environmental, social, and sustainability factors in the investment process.

Results in 2022 have been unfavourable, both among bonds and equities, reflecting the pessimism of many investors over the economic future. This evolution and the volatility that comes with it are evidence of conflicting views on short-term economic and market trends.

Based on current prices and our profit growth estimate for the portfolio as a whole, we expect the fund to double its net-worth in five years.

Elevated volatility and uncertainty make macroeconomic forecasting difficult, once again lending credence to our investment style, which focuses on asset selection.

For this reason we try to isolate ourselves from such distortions that predict high returns in future, but which can cloud the investor’s vision.

The good news is that government bonds are no longer offering negative returns and are once again making sense as a safe-haven asset.

We maintain our strategy of concentrating our investments in these quality businesses that, though they may fluctuate in price, their value remains intact and they serve as a repository of growing value.

EDM reaffirms this conviction with the launch of our new fund, the objective of which is sustainable investment. The fund is consistent with the United Nations Sustainable Development Goals.

With regard to energy, transitioning to an economy with a smaller CO2 footprint will take time and money, and will likely require a realistic revision to avoid supply problems.

Confidence has deteriorated somewhat, but both domestic spending and foreign trade continue to be strong.