Global growth strategy

— FARNAM TREE GLOBAL GROWTH

Investment objective

Global Growth strategy seeks to achieve long-term growth by building a concentrated portfolio of excellent businesses with competitive advantages and potential for sustained growth.

Why invest in Farnam Tree Global Growth?

  • Growth strategy with an emphasis on sustainable earnings growth

  • Concentrated portfolio of approximately 25 high-quality companies

  • Focus on companies with high returns on capital

  • Low portfolio turnover with long holding periods

Our approach

We view holding equities commensurate with owning the entire business outright and retaining management.  As minority investors, aligning with excellent management is a great way to protect capital and compound returns over the long-term.

We invest in businesses and ideas we can understand.  Everything else is cast aside as too difficult.  Even though we are unconstrained by geography, we fish in a small pond with our investment criteria.  This allows us to concentrate capital into our best ideas.

— YOUR QUESTIONS

  • Businesses that have easily identifiable and sustainable competitive advantages. They need to have strong pricing power and financed with healthy balance sheets. This can translate into predictable and durable free cash flows.

    Strong management teams that think long-term.

    Our research is mainly concentrated in companies across the financials, consumer, technology, services and healthcare sectors.

  • We are unconstrained where we look and invest. At any given moment in time, the businesses in our portfolio are likely to be invested in business from 5-8 countries.

  • No. Many Thai companies do not meet our investment criteria, in particular on corporate governance.

  • We have no specific targets for a number of new ideas per year. Focusing on upgrading our portfolio holdings drives the buying and selling we do.

  • Our mandate is to identify and invest in exceptional businesses, and we carry this out by holding as little cash on hand as possible. We prefer not to time the market by raising cash during periods of volatility.

— GET IN TOUCH

Take our short questionnaire and we will reach out to you.