The whole market, one method.
We analyze every stock with one consistent investment method: the discipline of value investing —buying below intrinsic value, with a margin of safety— paired with a dynamic, long-term lens centered on return on capital and its productive reinvestment.
What we do
Every investment decision comes down to one question: how much is the business worth versus what it costs? We estimate value —the cash a company can generate over time— and weigh it against its market price, with a long-term horizon and a dynamic view: what matters is not today's snapshot but the business's ability to compound value over the coming years. We do not predict the share price; we measure the return offered by the current price and the margin of safety that protects against an estimation error.
The method — four approaches at once
Value investing
Intrinsic value against price. We estimate the cash an owner can take out of the business (owner earnings), require a durable moat and buy with a margin of safety.
Value over time
An asset's value is its future cash flow, discounted for time: a dollar today is worth more than one tomorrow. The business invests today to collect later.
A dynamic approach
A business is not a snapshot but a trajectory. Growth is part of value: a company is worth not what it shows today, but what it will be able to generate.
ROIC, the engine of compounding
As long as a company reinvests at a return on capital (ROIC) above its cost, value compounds exponentially. That is the true engine of the long term.
How we analyze a company
Eight steps, from the business to the valuation.
Industry. Where the company operates and the dynamics of its sector: whether the industry is growing, how much investment it attracts and where demand is heading. The sector sets the bounds of what any company within it can achieve.
Competitive moat. The durable competitive advantage that defends those returns: network effects, brand, switching costs, scale or assets that are hard to replicate. Without a moat, competition eventually erodes margins.
Growth. How and why the company grows. We look for productive growth: that each dollar reinvested earns a return on capital above its cost and improves the productivity of the business. Growth that does not earn its cost of capital destroys value instead of creating it.
Profitability. We value on owner earnings and free cash flow: the real cash left once the investment needed to sustain the business is covered. CFROIC verifies that those returns are backed by cash and not only by accounting —whether the profit is real or on paper.
Financial health. Solvency and capital structure, interpreted by the type of business: debt, liquidity and coverage. Negative working capital (float) is a strength, not a weakness, and an investment phase is not a risk in itself.
Bear case (risks). We build the case against: we actively try to refute the thesis and list what would invalidate it —the cycle, competition, regulation, currency. The bear case is built, not decorated.
Management. We assess management as a capital allocator: how it reinvests cash, whether it buys back or issues shares at a good price, and the quality of its acquisitions. And its alignment with shareholders: that insiders hold their own stake (skin in the game) and have a track record of decisions that back it up.
Valuation. We project results three and five years out, in three scenarios —base, bear and bull— and value them with the metric that captures the real economics of each business: a marketplace, a bank, an oil producer and a REIT are not measured the same way. When a company combines lines of a different nature, we value each with its own comparable multiple and add the parts (sum of the parts, SOTP). On the estimated value we require a margin of safety: buying below value protects us against estimation errors and tilts the risk-reward in our favor. Optionalities stay outside the base, as additional upside.
What we draw on
The method integrates the ideas of the investors and economists who best explain how a business creates value and how that value is measured.
Estimating value
- Benjamin Graham — intrinsic value and the margin of safety.
- Warren Buffett — owner earnings and the discipline of paying well for businesses with a moat.
- Philip Fisher — the qualitative analysis of the business and its competitive advantage.
- Bruce Greenwald — earnings power and maintenance capex.
- Howard Marks — risk as the permanent loss of capital, cycles and contrarian thinking.
- Francisco García Paramés — the long-term horizon and independence from consensus.
Quality, moat and capital allocation
- Pat Dorsey — identifying the competitive moat and judging its durability.
- William Thorndike — the executive's role as a capital allocator.
- Edward Chancellor — the capital cycle: how competition erodes high returns.
- Peter Lynch — classifying the type of company and investing within the circle of competence.
ROIC, reinvestment and multiples
- Aswath Damodaran — ROIC, the reinvestment rate and intrinsic growth.
- Joel Greenblatt — combining return on capital with the earnings yield on price.
- Tobias Carlisle — the acquirer's multiple (EV/EBIT) and deep value.
Analytical and accounting discipline
- Baruch Lev — the biases of accounting: intangibles and estimates.
- Anurag Sharma — disconfirmation: the rigor of seeking to refute one's own thesis.
Transparency: the derivation of every figure
No hidden math: every valuation lays out its derivation —the metric times the multiple, the model step by step, the DCF with its assumptions. Each company cites the exact filings used (10-K, 10-Q, 20-F) with a link to the source.
How we do it at scale
The method, the judgment and the verdict are ours: every analysis applies the same discipline, company by company, and every figure is traceable to the original filing. AI-assisted automation handles the mechanical work —gathering the reports, extracting the exact numbers, organizing the data— with checks that verify each figure against its source. That is how we cover hundreds of companies with the depth of a dedicated analysis, without diluting the rigor.
Research, not advice
This is research for educational and informational purposes, not investment advice. We provide descriptive states —from “Very undervalued” to “Overvalued”, by expected return— not buy orders or personalized recommendations. The investment decision, and its risk, rest with each investor.