This portfolio is designed for patient investors with a time horizon of more than 10 years. We like to identify companies that give us peace of mind and that we are comfortable holding for many years.

The key to identifying such stocks is to look for companies that have:

• Strong corporate governance
• Proven track record
• Sustainable competitive advantages
• Strong leadership position in their specific market segment, and
• Superior returns on invested capital

As our investing approach relies on the power of compounding, we evaluate businesses using a combination of their Return on Invested Capital and the Return on Incremental Invested Capital. Businesses that can demonstrate high returns on incremental capital invested have the ability to compound at higher rates than their peers.