In order to replicate, or even improve, strong historical value creation we need to invest in strong corporate cultures. A strong, enduring culture is the single biggest competitive advantage in a fast-changing world. To form an opinion on culture we need to get insights below the ranks of top management.
We want to invest in management teams that are outstanding capital allocators. When we find CEOs who are highly competent in human and cultural aspects as well as capital allocation, we pay close attention to them. Capital allocation has a big impact on the value creation of the company and therefore on the stock return. An important part of our investment philosophy is to gain a deep cultural understanding. We talk to various stakeholders around the companies before investing and have initiated a project to use machine learning and Big Data to gain further cultural understanding. We invest with insight.
Our investment philosophy is deeply described in our book «Investing in Value Creators» written by investment director, Oddbjørn Dybvad. Our investing experience and our investment principles are described in our investor manual.