Warren Buffett is known for producing stable long term
investment returns with an investment style that is based on
strong fundamentals. Adopting a similar style, this fund will
invest in stocks with the following qualities:
- All stocks are supported by a strong brand name and/or product range.
- Each company has a sustainable business model.
- Companies demonstrate strong return on invested capital.
- A strong management record exists.
- There is intrinsic value in the current share price.
Bloxham evaluates the level of return the company gets on the
capital it invests. Companies must have a record of consistently
producing higher returns on equity than other companies in the
same sector to be included in the fund.
Another check on the performance of a company is to look at its
debt level. A small amount of debt means that the earnings
growth is being generated from shareholders, equity, which is
more sustainable than earnings growth generated from
borrowings.
High profit margins in an established company generally
indicates that the company is executing its business well. If
margins are increasing it is a good indicator that management
has been efficient and successful at controlling expenses.
Bloxham believes that this strong management record is
important for continued growth.
Value investing means looking at companies that have stood the
test of time, but are currently undervalued. This approach meant
that Warren Buffet was left behind in the tech-boom of the late
90’s, but his funds were resilient when the bubble burst.
Suitability
This style is based on long term growth expectations and would be
a suitable concentrated core holding for most portfolios. Stocks
selected for this fund are likely to demonstrate more stable returns
than markets in general. The fund will have little trading but aims to
out-perform over a 10 year investment period.
Provider: Irish Life
- Personal Investments (Signature/Signature 2/Signature Saver)
- Personal/Executive Pensions (Complete Solutions and Navigator)
- ARFs and AMRFs / Self Administered Pensions (Complete Solutions)
- Buy Out Bonds
