I do not have a fixed source of investments. I try to remain as open as possible to new ideas.


In the past my ideas have come from:

  • The screening of stock markets world-wide using time tested investing criteria such as low price to earnings, high return on equity, low debt and low price to book ratios.
  • Interesting companies read about in books, magazines or internet
  • Unusual companies mentioned by family and friends
  • Following investments of fund managers we admire
  • Discussions with fellow investors and newsletter readers


I however know my limits and do not invest in companies we do not understand.


Once I have identified an interesting company we conduct a financial analysis which consists of the following:

  • I analise the company using a minimum of seven years of financial data
  • I work through a check list of more than 75 points which we have put together over many years of reading and practical experience
  • The check list allows me to quickly identify where we have to dig deeper into the financial statements of the company
  • I focus strongly on cash flows as they are less prone to accounting manipulation and is the real life blood of any company
  • I avoid companies with high levels of debt preferring companies that are not capital or asset intensive that generates a lot of free cash flow
  • Should a company pass our checklist we read through the annual, interim and quarterly financial reports to get to know the management and the business of the company

 Once I am satisfied with all of the above do I invest


Financial analysis example (PDF 27 KB)


Also have a look at:

My Investment Philosophy 

Our Expert