We invest in publicly traded companies via “Valsef Capital“, our private investment portfolio. We invest based on the principles of value investing while focusing in areas of the public markets that have historically shown pricing inefficiency. As a result, our investments typically fall into three buckets:
Established companies that can deploy capital at an ROIC of over 20% – our experience substantiates the notion that investors do not typically reward a company’s capital allocation prowess despite strong historic evidence
SMEs that have little to no research coverage, low liquidity and limited established history; but have demonstrated discipline in growing their business with evidence of early success that will accelerate with time
Spin-offs that present great buying opportunities in good and sometimes great businesses at prices far below their intrinsic value. With no previous history of the business as a standalone entity; and hence limited information of future prospects there is selling pressure around the spin-off event.