Bertley\u2019s approach to investing comprises four steps:
1. Avoid big mistakes
2. Select good companies
3. Buy quality at a fair price
4. Hold for the long term<\/p>\n\n\n\n
\u201cAn investor needs to do very few things right as long as he avoids big mistakes,\u201d Warren Buffett.<\/em><\/p>\n\n\n\n Bertley is highly selective in choosing investments to avoid big mistakes. This cautious approach may lead to missing out on some good ones.<\/p>\n\n\n\n First, we apply a risk filter to eliminate big mistakes. We stay away from: Second, we shortlist businesses based on historical high-ROCE of 20% or more over the past five to ten years. This approach screens out hundreds of low-quality businesses but might exclude some potential winners.<\/p>\n\n\n\n A high ROCE indicates that the management team allocates capital effectively, have built a durable competitive advantage, and have room for innovation and growth compared to peers.<\/p>\n\n\n\n Next, we apply additional filters to create a final list of companies to track for investments.<\/p>\n\n\n\n A strong business has a durable competitive advantage, high ROCE, stable management, minimal debt and operates in a slow-changing industry.<\/p>\n\n\n\n Warren Buffett believes <\/em>MARGIN OF SAFETY<\/em><\/strong> the cornerstone of investment success.<\/em><\/p>\n\n\n\n We patiently wait for the right price. The market is efficient, but not always. Occasionally, market fluctuations provide opportunities to buy high-quality businesses at attractive valuations. We wait for those few occasions and seize such golden opportunities.<\/p>\n\n\n\n After investing, we ignore market fluctuations. Our minimum holding period is five to seven years unless our thesis is wrong.<\/p>\n","protected":false},"excerpt":{"rendered":" Bertley\u2019s approach to investing comprises four steps:1. Avoid big mistakes2. Select good companies3. Buy quality at a fair price4. Hold for the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"_links":{"self":[{"href":"https:\/\/bertleycapital.com\/index.php?rest_route=\/wp\/v2\/pages\/9"}],"collection":[{"href":"https:\/\/bertleycapital.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bertleycapital.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bertleycapital.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bertleycapital.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9"}],"version-history":[{"count":7,"href":"https:\/\/bertleycapital.com\/index.php?rest_route=\/wp\/v2\/pages\/9\/revisions"}],"predecessor-version":[{"id":64,"href":"https:\/\/bertleycapital.com\/index.php?rest_route=\/wp\/v2\/pages\/9\/revisions\/64"}],"wp:attachment":[{"href":"https:\/\/bertleycapital.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
1. Low-quality companies
2. Bad industries
3. Bad managements
4. Unaligned ownership
5. Companies with high-debt
6. Fast-changing industries
7. Merger and acquisition scenarios
8. Fear of missing out<\/p>\n\n\n\n